SoundHound AI (NASDAQ:SOUN) Trading Down 3.5% – Here’s What Happened

Shares of SoundHound AI, Inc. (NASDAQ:SOUN) were down 3.5% on Tuesday . The company traded as low as $8.92 and last traded at $9.14. Approximately 30,762,700 shares changed hands during trading, an increase of 13% from the average daily volume of 27,326,096 shares. The stock had previously closed at $9.47.

Key Stories Impacting SoundHound AI

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

• Positive Sentiment: SoundHound launched OASYS, a self‑learning “orchestrated agentic” AI platform that markets as letting businesses create agents that build and improve themselves — a product that could drive larger enterprise deployments and recurring revenue if adopted broadly. SoundHound AI Introduces OASYS (GlobeNewswire) SoundHound AI Introduces OASYS (Yahoo Finance)
• Neutral Sentiment: Fundamentals: the company reported strong revenue growth last quarter (revenue up ~59% YoY and a small EPS beat), and Q1 results are due May 7 — the print could validate growth and support the stock, but outcomes and guidance will determine direction. SoundHound to Post Q1 Earnings (Zacks)
• Negative Sentiment: Recent price action has been driven by retail momentum (a 20%+ intraday pop and a month-long rip), including social media setups — that raises downside risk if earnings or forward commentary disappoint. Skip the SoundHound Hype (247WallSt) SoundHound Stock Soars 20% (Blockonomi)
• Negative Sentiment: Analysts/technicals are mixed — some note estimate‑revision risk and caution that the surge may not be sustainable absent continued upgrades, while chart signals show high volatility and volume spikes. Traders should expect sharp moves around the upcoming earnings release. SOUN Moves 20.1% Higher (Yahoo Markets) Chart Signals (Benzinga)

Analyst Upgrades and Downgrades

A number of research analysts have weighed in on SOUN shares. HC Wainwright reduced their target price on SoundHound AI from $26.00 to $20.00 and set a “buy” rating on the stock in a report on Monday, March 2nd. DA Davidson reiterated a “buy” rating and set a $14.00 target price on shares of SoundHound AI in a report on Wednesday, April 22nd. Piper Sandler reiterated a “neutral” rating and set a $9.00 target price (down from $11.00) on shares of SoundHound AI in a report on Friday, February 27th. Weiss Ratings reiterated a “sell (d-)” rating on shares of SoundHound AI in a report on Friday, January 9th. Finally, Zacks Research upgraded SoundHound AI from a “strong sell” rating to a “hold” rating in a report on Monday, February 9th. One equities research analyst has rated the stock with a Strong Buy rating, five have assigned a Buy rating, three have issued a Hold rating and one has issued a Sell rating to the company. Based on data from MarketBeat, SoundHound AI has a consensus rating of “Moderate Buy” and an average target price of $14.93.

SoundHound AI Trading Down 3.5%

The company has a market cap of $3.86 billion, a PE ratio of -182.76 and a beta of 2.58. The firm has a 50 day moving average of $7.49 and a two-hundred day moving average of $10.41.

SoundHound AI (NASDAQ:SOUN) last posted its quarterly earnings results on Thursday, February 26th. The company reported ($0.02) earnings per share for the quarter, hitting the consensus estimate of ($0.02). The company had revenue of $55.06 million for the quarter, compared to the consensus estimate of $53.88 million. SoundHound AI had a negative return on equity of 3.63% and a negative net margin of 8.71%.The firm’s quarterly revenue was up 59.4% compared to the same quarter last year. During the same quarter in the prior year, the business posted ($0.05) EPS. On average, research analysts forecast that SoundHound AI, Inc. will post -0.34 EPS for the current year.

Insider Buying and Selling

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

Hedge Funds Weigh In On SoundHound AI

Several hedge funds and other institutional investors have recently added to or reduced their stakes in the business. EP Wealth Advisors LLC lifted its position in SoundHound AI by 5.3% in the 2nd quarter. EP Wealth Advisors LLC now owns 14,100 shares of the company’s stock valued at $151,000 after acquiring an additional 706 shares in the last quarter. Newbridge Financial Services Group Inc. lifted its position in SoundHound AI by 2.7% in the 3rd quarter. Newbridge Financial Services Group Inc. now owns 31,880 shares of the company’s stock valued at $513,000 after acquiring an additional 830 shares in the last quarter. Insigneo Advisory Services LLC lifted its position in SoundHound AI by 7.4% in the 3rd quarter. Insigneo Advisory Services LLC now owns 12,416 shares of the company’s stock valued at $200,000 after acquiring an additional 858 shares in the last quarter. Clear Creek Financial Management LLC lifted its position in SoundHound AI by 1.6% in the 4th quarter. Clear Creek Financial Management LLC now owns 58,091 shares of the company’s stock valued at $579,000 after acquiring an additional 941 shares in the last quarter. Finally, PNC Financial Services Group Inc. lifted its position in SoundHound AI by 15.5% in the 3rd quarter. PNC Financial Services Group Inc. now owns 7,127 shares of the company’s stock valued at $115,000 after acquiring an additional 956 shares in the last quarter. 19.28% of the stock is owned by 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.