SoundHound AI (NASDAQ:SOUN) Trading Up 1.3% – Should You Buy?

SoundHound AI, Inc. (NASDAQ:SOUN) shot up 1.3% during trading on Thursday . The stock traded as high as $8.47 and last traded at $8.27. 25,340,495 shares were traded during mid-day trading, a decline of 7% from the average session volume of 27,109,158 shares. The stock had previously closed at $8.16.

Key SoundHound AI News

Here are the key news stories impacting SoundHound AI this week:

• Positive Sentiment: Company posted record 2025 results — revenue of $168.9M (roughly 100% YoY) and Q4 revenue of $55.1M (up ~59%), underscoring accelerating enterprise demand for voice/AI products. SoundHound AI (SOUN) Reports 2025 Revenue of $168.9M, 100% YoY Growth
• Positive Sentiment: Management projects continued growth into 2026 (firm-level commentary and analyst coverage cite a 2026 revenue outlook in the $225M–$260M range), which supports longer-term upside if execution holds. SoundHound’s 59% Revenue Surge in 2025: What Does 2026 Hold?
• Positive Sentiment: Product and geographic expansion: rollout of a “Sales Assist” voice AI for retail and a new Bengaluru innovation hub could accelerate go‑to‑market and lower R&D/operating costs long-term. SoundHound AI Expands With Sales Assist Rollout And Bengaluru Hub
• Neutral Sentiment: Extremely high short interest (>35% of float) increases volatility — could amplify downward pressure but also raises squeeze speculation; this makes trading choppy regardless of fundamentals. SoundHound Is One of the Most Short Stocks Right Now. Should You Bet on a SOUN Squeeze?
• Negative Sentiment: H.C. Wainwright cut its price target from $26 to $20 (but kept a Buy rating), signaling valuation/near-term risk despite growth — this likely pressured the stock as investors recalibrate upside. HC Wainwright lowered its price target on SoundHound AI, Inc. (SOUN) to $20 and maintains a buy rating
• Negative Sentiment: Analyst pieces and market commentary highlight that SOUN remains unprofitable (negative EPS and margins) and faces valuation risk; several articles flag the stock as risky and note recent share weakness, contributing to selling pressure. Should You Buy, Sell or Hold SoundHound Stock Post Q4 Earnings?
• Negative Sentiment: Coverage pieces and at least one noted analyst downgrade have amplified caution among investors, reinforcing the pullback despite strong revenue prints. SoundHound AI (NASDAQ:SOUN) Stock Price Down 1.3% on Analyst Downgrade

Wall Street Analyst Weigh In

Several equities research analysts recently weighed in on SOUN shares. LADENBURG THALM/SH SH raised shares of SoundHound AI to a “strong-buy” rating in a research note on Thursday, December 18th. Piper Sandler reissued a “neutral” rating and issued a $9.00 price target (down from $11.00) on shares of SoundHound AI in a research report on Friday, February 27th. Weiss Ratings restated a “sell (d-)” rating on shares of SoundHound AI in a research note on Friday, January 9th. Cantor Fitzgerald raised SoundHound AI from a “neutral” rating to an “overweight” rating and upped their price objective for the stock from $13.00 to $15.00 in a research report on Friday, December 12th. Finally, DA Davidson set a $14.00 price objective on SoundHound AI in a research note on Thursday, January 8th. One equities research analyst has rated the stock with a Strong Buy rating, five have assigned a Buy rating, three have assigned a Hold rating and one has given a Sell rating to the stock. Based on data from MarketBeat.com, the stock presently has an average rating of “Moderate Buy” and an average target price of $14.93.

SoundHound AI Stock Down 2.4%

The company’s fifty day moving average is $9.32 and its two-hundred day moving average is $12.67. The stock has a market cap of $3.39 billion, a price-to-earnings ratio of -161.37 and a beta of 2.65.

SoundHound AI (NASDAQ:SOUN) last posted its quarterly earnings results on Thursday, February 26th. The company reported ($0.02) EPS for the quarter, hitting the consensus estimate of ($0.02). SoundHound AI had a negative net margin of 8.71% and a negative return on equity of 3.63%. The company had revenue of $55.06 million during the quarter, compared to analysts’ expectations of $53.88 million. During the same quarter in the previous year, the business posted ($0.05) EPS. The firm’s revenue was up 59.4% on a year-over-year basis. Sell-side analysts predict that SoundHound AI, Inc. will post -0.38 EPS for the current fiscal year.

Insider Activity at SoundHound AI

In other SoundHound AI news, SVP Majid Emami sold 32,741 shares of SoundHound AI stock in a transaction dated Friday, December 26th. The stock was sold at an average price of $10.66, for a total transaction of $349,019.06. Following the completion of the sale, the senior vice president directly owned 532,845 shares of the company’s stock, valued at $5,680,127.70. The trade was a 5.79% decrease in their position. The sale was disclosed in a filing with the Securities & Exchange Commission, which is available at this link. Also, COO Michael Zagorsek sold 73,406 shares of the company’s stock in a transaction dated Monday, December 22nd. The stock was sold at an average price of $11.28, for a total value of $828,019.68. Following the transaction, the chief operating officer directly owned 1,787,459 shares of the company’s stock, valued at approximately $20,162,537.52. This represents a 3.94% decrease in their ownership of the stock. The SEC filing for this sale provides additional information. Insiders sold 460,922 shares of company stock worth $5,199,073 over the last three months. Company insiders own 9.17% of the company’s stock.

Hedge Funds Weigh In On SoundHound AI

Hedge funds have recently added to or reduced their stakes in the stock. Danske Bank A S purchased a new stake in shares of SoundHound AI during the 3rd quarter worth approximately $26,000. Investors Research Corp grew its position in shares of SoundHound AI by 62.4% in the 3rd quarter. Investors Research Corp now owns 1,822 shares of the company’s stock valued at $29,000 after buying an additional 700 shares during the last quarter. Financial Consulate Inc. acquired a new stake in SoundHound AI during the 3rd quarter worth $32,000. Sound Income Strategies LLC raised its stake in SoundHound AI by 37.3% during the 3rd quarter. Sound Income Strategies LLC now owns 2,116 shares of the company’s stock worth $34,000 after acquiring an additional 575 shares in the last quarter. Finally, Northwestern Mutual Wealth Management Co. lifted its position in SoundHound AI by 83.1% in the second quarter. Northwestern Mutual Wealth Management Co. now owns 2,336 shares of the company’s stock valued at $25,000 after acquiring an additional 1,060 shares during the last quarter. 19.28% of the stock is currently owned by hedge funds and other institutional investors.

SoundHound AI Company Profile

SoundHound AI, Inc is a voice AI and conversational intelligence company specializing in speech recognition, natural language understanding and sound identification technologies. Founded in 2005 and headquartered in Santa Clara, California, the company initially gained recognition with its music discovery app before pivoting to enterprise-grade voice AI solutions. Over the years, SoundHound AI has built a comprehensive platform that enables developers and businesses to embed conversational intelligence into a wide range of products and services.

The company’s core offering is the Houndify voice AI platform, which provides customizable speech-to-meaning technology, domain-specific natural language understanding and text-to-speech capabilities.