SoundHound AI (NASDAQ:SOUN) Shares Down 6.3% – What’s Next?

SoundHound AI, Inc. (NASDAQ:SOUN)’s stock price dropped 6.3% during mid-day trading on Tuesday . The stock traded as low as $6.76 and last traded at $7.02. Approximately 25,801,289 shares traded hands during mid-day trading, a decline of 6% from the average daily volume of 27,509,656 shares. The stock had previously closed at $7.49.

SoundHound AI News Roundup

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

• Positive Sentiment: SoundHound was named the overall leader in the 2026 ISG Buyers Guide for Conversational AI Emerging Providers, with leader rankings across product experience, capability, and platform categories. That recognition can strengthen its credibility with enterprise customers and support adoption of its voice and agentic AI products. Article: SoundHound AI Named As Overall Leader in The 2026 ISG Buyers Guide™ for Conversational AI Emerging Providers
• Positive Sentiment: Analyst commentary has turned more constructive, with several pieces noting that Wall Street remains optimistic and that SOUN could have meaningful upside from current levels. Positive analyst tone often helps sentiment around a high-volatility growth name like SoundHound. Article: Is SoundHound AI (SOUN) a Buy as Wall Street Analysts Look Optimistic?
• Positive Sentiment: Investors are focusing on SoundHound’s planned LivePerson acquisition, which could broaden its enterprise AI reach, improve cross-selling, and potentially support a path toward $500 million in revenue. That deal narrative adds to the long-term growth story. Article: SoundHound’s LivePerson Bet: Can It Unlock a $500M AI Opportunity?
• Neutral Sentiment: Several articles frame SoundHound as a high-upside but risky pure-play AI stock, with commentary that it has potential for long-term growth but still faces competitive and execution risks. Article: 2 Hypergrowth Pure-Play AI Stocks to Buy and Hold for the Next Decade
• Neutral Sentiment: One bearish-leaning article argued that SoundHound lacks a wide moat and has been more of a niche player, though it also acknowledged the company has expanded beyond its original customer base. This keeps the stock’s risk profile in focus, but it is not a clear near-term negative catalyst. Article: Why I’m Rethinking My Bearish Outlook on SoundHound AI: The Stock Could Be a Long-Term Winner
• Negative Sentiment: SoundHound remains a volatile, beaten-down AI stock, and some analyst-focused coverage highlights that its past underperformance and execution risk may still limit the pace of any rebound. Article: Wall Street Thinks This beaten Down AI Stock Could Easily Double From Here

Analyst Ratings Changes

SOUN has been the topic of several recent research reports. LADENBURG THALM/SH SH upgraded SoundHound AI to a “strong-buy” rating in a report on Wednesday, May 6th. Piper Sandler reissued a “neutral” rating and issued a $9.00 price objective (down from $11.00) on shares of SoundHound AI in a research note on Friday, February 27th. DA Davidson reissued a “buy” rating and issued a $14.00 price objective on shares of SoundHound AI in a research note on Wednesday, April 22nd. Finally, HC Wainwright lowered their price objective on SoundHound AI from $26.00 to $20.00 and set a “buy” rating for the company in a research note on Monday, March 2nd. One investment analyst has rated the stock with a Strong Buy rating, five have given a Buy rating, three have given a Hold rating and one has issued a Sell rating to the company’s stock. Based on data from MarketBeat, the company has a consensus rating of “Moderate Buy” and an average price target of $14.93.

SoundHound AI Stock Up 3.7%

The stock has a market capitalization of $3.03 billion, a PE ratio of -14.89 and a beta of 2.56. The firm has a 50 day moving average price of $7.91 and a 200 day moving average price of $8.98.

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

Insider Activity at SoundHound AI

In related news, insider James Ming Hom sold 31,019 shares of the stock in a transaction that occurred on Friday, March 20th. The stock was sold at an average price of $6.79, for a total transaction of $210,619.01. Following the completion of the sale, the insider directly owned 772,364 shares of the company’s stock, valued at approximately $5,244,351.56. This trade represents a 3.86% decrease in their ownership of the stock. The sale was disclosed in a legal filing with the SEC, which can be accessed through this link. Also, CFO Nitesh Sharan sold 44,027 shares of the stock in a transaction that occurred on Friday, March 20th. The shares were sold at an average price of $6.79, for a total value of $298,943.33. Following the sale, the chief financial officer directly owned 1,661,121 shares of the company’s stock, valued at $11,279,011.59. The trade was a 2.58% decrease in their ownership of the stock. The SEC filing for this sale provides additional information. Insiders sold a total of 307,973 shares of company stock valued at $2,091,110 in the last ninety days. Insiders own 8.84% of the company’s stock.

Hedge Funds Weigh In On SoundHound AI

Several institutional investors and hedge funds have recently bought and sold shares of the company. Vanguard Group Inc. grew its holdings in SoundHound AI by 4.4% during the fourth quarter. Vanguard Group Inc. now owns 45,367,437 shares of the company’s stock valued at $452,313,000 after purchasing an additional 1,909,868 shares during the period. Geode Capital Management LLC grew its holdings 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 purchasing an additional 273,097 shares during the period. Morgan Stanley grew its holdings in SoundHound AI by 48.1% during the fourth quarter. Morgan Stanley now owns 8,987,522 shares of the company’s stock valued at $89,606,000 after purchasing an additional 2,917,280 shares during the period. State Street Corp grew its holdings in SoundHound AI by 0.9% during the fourth quarter. State Street Corp now owns 8,691,235 shares of the company’s stock valued at $86,652,000 after purchasing an additional 80,908 shares during the period. Finally, UBS Group AG grew its holdings in SoundHound AI by 77.6% during the fourth quarter. UBS Group AG now owns 6,124,283 shares of the company’s stock valued at $61,059,000 after purchasing an additional 2,676,707 shares during the period. 19.28% of the stock is owned by institutional investors.

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.