SoundHound AI (NASDAQ:SOUN) Stock Price Down 3.7% – Should You Sell?

SoundHound AI, Inc. (NASDAQ:SOUN) traded down 3.7% on Thursday . The company traded as low as $6.19 and last traded at $6.22. 49,657,239 shares changed hands during mid-day trading, an increase of 77% from the average session volume of 28,004,467 shares. The stock had previously closed at $6.46.

Key SoundHound AI News

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

• Positive Sentiment: SoundHound AI announced a partnership with Deliverect to create a fully automated restaurant voice-ordering channel, expanding its AI footprint across drive-thru, phone, kiosk, and in-car ordering in more than 100 languages. This could boost future commercial adoption and revenue potential. Deliverect and SoundHound AI Partner to Turn Voice Into a Fully Automated Ordering Channel for Restaurants
• Positive Sentiment: LivePerson sent a letter encouraging stockholders to vote for its pending transaction with SoundHound AI, which suggests progress on a strategic deal that could add scale, a stronger balance sheet, and broader capabilities if completed. LivePerson Sends Letter to Stockholders Highlighting Benefits of Pending Transaction with SoundHound AI
• Positive Sentiment: Analyst-style commentary highlighted SoundHound AI’s restaurant automation opportunity, its OASYS platform, and the pending LivePerson deal as possible long-term growth drivers, reinforcing the stock’s AI narrative. Can SoundHound Disrupt Restaurant Automation in 2026 and Beyond?
• Neutral Sentiment: The company said it will report second-quarter 2026 results on August 5, setting up the next major event that could move the stock depending on revenue growth, margins, and guidance. SoundHound AI To Report 2026 Second Quarter Financial Results, Host Conference Call and Webcast on August 5
• Neutral Sentiment: Market commentary noted the shares may still look expensive even after strong long-term gains, with recent Gartner recognition and the OASYS rollout helping the growth story but not removing valuation concerns. SoundHound AI (SOUN) Stock Could Trade At A Premium Despite Gartner Recognition
• Negative Sentiment: Despite the positive business news, SOUN has recently been trading lower, reflecting investor caution ahead of earnings and ongoing concerns about profitability and valuation. Here’s Why SoundHound AI, Inc. (SOUN) Fell More Than Broader Market

Analyst Upgrades and Downgrades

Several equities analysts have recently issued reports on SOUN shares. DA Davidson reaffirmed a “buy” rating and issued a $14.00 price objective on shares of SoundHound AI in a research note on Wednesday, April 22nd. Weiss Ratings reissued a “sell (e+)” rating on shares of SoundHound AI in a research note on Monday, June 15th. Finally, LADENBURG THALM/SH SH upgraded shares of SoundHound AI to a “strong-buy” rating in a report on Wednesday, May 6th. One 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 company. 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 Trading Down 3.7%

The company’s 50-day moving average is $7.26 and its 200 day moving average is $7.98. The firm has a market cap of $2.69 billion, a PE ratio of -13.23 and a beta of 2.62.

SoundHound AI (NASDAQ:SOUN) last posted its quarterly earnings data on Thursday, May 7th. The company reported ($0.06) earnings per share for the quarter, missing the consensus estimate of ($0.05) by ($0.01). SoundHound AI had a negative return on equity of 40.15% and a negative net margin of 91.84%.The firm had revenue of $44.20 million for the quarter, compared to analysts’ expectations of $42.56 million. During the same quarter in the previous year, the firm posted ($0.06) earnings per share. The company’s revenue for the quarter was up 51.7% on a year-over-year basis. On average, research analysts predict that SoundHound AI, Inc. will post -0.45 EPS for the current fiscal year.

Insider Buying and Selling at SoundHound AI

In related news, CEO Keyvan Mohajer sold 126,540 shares of the company’s stock in a transaction on Monday, June 15th. The stock was sold at an average price of $7.46, for a total transaction of $943,988.40. Following the transaction, the chief executive officer directly owned 1,947,237 shares of the company’s stock, valued at approximately $14,526,388.02. The trade was a 6.10% decrease in their ownership of the stock. The transaction was disclosed in a filing with the Securities & Exchange Commission, which is accessible through the SEC website. The sale was made to cover tax withholding obligations related to the vesting of equity awards. Also, COO Michael Zagorsek sold 64,994 shares of the stock in a transaction dated Monday, June 15th. The stock was sold at an average price of $7.46, for a total value of $484,855.24. Following the completion of the sale, the chief operating officer directly owned 1,669,497 shares of the company’s stock, valued at approximately $12,454,447.62. This represents a 3.75% decrease in their ownership of the stock. The disclosure for this sale is available in the SEC filing. The sale was made to cover tax withholding obligations related to the vesting of equity awards. Insiders have sold a total of 268,022 shares of company stock valued at $1,999,444 in the last ninety days. Company insiders own 8.84% of the company’s stock.

Institutional Trading of SoundHound AI

Hedge funds have recently made changes to their positions in the stock. Vanguard Group Inc. raised its stake in shares of SoundHound AI by 4.4% during the 4th quarter. Vanguard Group Inc. now owns 45,367,437 shares of the company’s stock worth $452,313,000 after purchasing an additional 1,909,868 shares in the last quarter. Rakuten Securities Inc. grew its stake in shares of SoundHound AI by 877.9% in the 4th quarter. Rakuten Securities Inc. now owns 333,605 shares of the company’s stock valued at $3,326,000 after buying an additional 299,492 shares in the last quarter. UBS Group AG increased its holdings in SoundHound AI by 77.6% in the fourth quarter. UBS Group AG now owns 6,124,283 shares of the company’s stock worth $61,059,000 after buying an additional 2,676,707 shares during the last quarter. Mitsubishi UFJ Asset Management Co. Ltd. increased its holdings in SoundHound AI by 140.5% in the fourth quarter. Mitsubishi UFJ Asset Management Co. Ltd. now owns 266,576 shares of the company’s stock worth $2,826,000 after buying an additional 155,743 shares during the last quarter. Finally, Geode Capital Management LLC raised its position in SoundHound AI by 3.1% during the fourth quarter. Geode Capital Management LLC now owns 9,180,321 shares of the company’s stock valued at $91,543,000 after acquiring an additional 273,097 shares in the last quarter. 19.28% of the stock is 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.