SoundHound AI (NASDAQ:SOUN) Stock Price Down 4.8% – Here’s What Happened

SoundHound AI, Inc. (NASDAQ:SOUN)’s share price fell 4.8% on Friday . The company traded as low as $6.47 and last traded at $6.55. 29,738,476 shares traded hands during mid-day trading, an increase of 8% from the average session volume of 27,601,961 shares. The stock had previously closed at $6.88.

Trending Headlines about SoundHound AI

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

• Positive Sentiment: An analyst told media the shares could potentially double despite the CFO news, offering a bullish counterpoint that could attract speculative buying if confidence in execution returns. Analyst says SoundHound stock can double as CFO announces departure
• Positive Sentiment: SoundHound announced a commercial win with Peet’s Coffee to deploy its Employee Assist voice agent across the U.S. store footprint — a tangible enterprise customer and validation of recurring revenue opportunities. Peet’s Coffee Partners with SoundHound AI
• Positive Sentiment: Investor commentary outlets continued to list SOUN among under-the-radar AI names with multibagger potential, which can support longer-term interest from growth-focused investors. Prediction: These 3 Under-the-Radar Artificial Intelligence (AI) Stocks Could Be Multibaggers by End of 2026
• Neutral Sentiment: The company announced an interim finance leadership plan: co‑founder and former CFO James Hom will step in as interim CFO, which reduces near-term uncertainty but leaves longer-term succession questions open. SoundHound AI Announces CFO Transition
• Neutral Sentiment: Nitesh Sharan’s move to Quantinuum is confirmed — a routine executive move that explains the departure but doesn’t directly alter SoundHound’s product roadmap. Nitesh Sharan Joins Quantinuum as Chief Financial Officer
• Negative Sentiment: Shares sold off intraday amid the CFO transition and broader Voice-AI competition narrative (including Nvidia moves), with coverage noting a roughly 6% drop and break below a key $7 level — technical weakness that can trigger further selling. SoundHound AI Sinks 6%: What NVIDIA’s Voice AI Bet Says About The Broader Market
• Negative Sentiment: Multiple outlets attribute today’s selling pressure directly to the CFO departure, reflecting investor sensitivity to leadership turnover at a growth-stage AI company that is still not profitable. Why Is SoundHound AI Stock Tumbling Today?

Analysts Set New Price Targets

Several brokerages have recently issued reports on SOUN. LADENBURG THALM/SH SH upgraded shares of SoundHound AI to a “strong-buy” rating in a report on Thursday, December 18th. HC Wainwright lowered their target price on SoundHound AI from $26.00 to $20.00 and set a “buy” rating for the company in a report on Monday, March 2nd. Weiss Ratings reiterated a “sell (d-)” rating on shares of SoundHound AI in a research report on Friday, January 9th. Zacks Research raised SoundHound AI from a “strong sell” rating to a “hold” rating in a research note on Monday, February 9th. Finally, DA Davidson set a $14.00 price objective on SoundHound AI in a research note on Thursday, January 8th. One research analyst has rated the stock with a Strong Buy rating, five have issued a Buy rating, three have assigned a Hold rating and one has issued a Sell rating to the company. According to MarketBeat, the stock presently has an average rating of “Moderate Buy” and a consensus price target of $14.93.

SoundHound AI Trading Down 5.1%

The stock’s 50-day moving average price is $8.78 and its 200-day moving average price is $12.36. The stock has a market cap of $2.74 billion, a price-to-earnings ratio of -130.57 and a beta of 2.65.

SoundHound AI (NASDAQ:SOUN) last released its earnings results on Thursday, February 26th. The company reported ($0.02) earnings per share (EPS) for the quarter, meeting 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 business had revenue of $55.06 million for the quarter, compared to analyst estimates of $53.88 million. During the same quarter in the previous year, the business earned ($0.05) earnings per share. SoundHound AI’s revenue for the quarter was up 59.4% on a year-over-year basis. As a group, analysts predict that SoundHound AI, Inc. will post -0.38 earnings per share for the current year.

Insider Activity at SoundHound AI

In other SoundHound AI news, CTO Timothy Stonehocker sold 29,676 shares of the business’s stock in a transaction that occurred on Friday, January 9th. The stock was sold at an average price of $12.00, for a total value of $356,112.00. Following the transaction, the chief technology officer directly owned 544,179 shares of the company’s stock, valued at approximately $6,530,148. The trade was a 5.17% decrease in their ownership of the stock. The sale was disclosed in a filing with the Securities & Exchange Commission, which can be accessed through this hyperlink. Also, CFO Nitesh Sharan sold 60,780 shares of the stock in a transaction that occurred on Monday, December 22nd. The stock was sold at an average price of $11.28, for a total value of $685,598.40. Following the transaction, the chief financial officer owned 1,705,148 shares in the company, valued at $19,234,069.44. The trade was a 3.44% decrease in their ownership of the stock. The disclosure for this sale is available in the SEC filing. Insiders have sold 460,922 shares of company stock worth $5,199,073 over the last quarter. 9.17% of the stock is owned by company insiders.

Institutional Investors Weigh In On SoundHound AI

Large investors have recently bought and sold shares of the stock. Danske Bank A S bought a new stake in SoundHound AI in the third quarter valued at $26,000. Investors Research Corp grew its stake 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 period. Financial Consulate Inc. bought a new stake in SoundHound AI in the 3rd quarter valued at about $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 buying an additional 575 shares during the period. Finally, Northwestern Mutual Wealth Management Co. boosted its holdings 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 worth $25,000 after acquiring an additional 1,060 shares in the last quarter. 19.28% of the stock is currently owned by institutional investors and hedge funds.

About SoundHound AI

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.