SoundHound AI (NASDAQ:SOUN) Trading 13.3% Higher – What’s Next?

SoundHound AI, Inc. (NASDAQ:SOUN)’s stock price shot up 13.3% during trading on Friday . The stock traded as high as $8.13 and last traded at $8.02. 64,824,488 shares changed hands during mid-day trading, an increase of 123% from the average daily volume of 29,018,973 shares. The stock had previously closed at $7.08.

Key SoundHound AI News

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

• Positive Sentiment: SoundHound reported record second-quarter revenue of $61.9 million, up 45% year over year and well ahead of analyst estimates. The company’s adjusted loss also beat expectations, while gross profit increased 67.6% to $27.9 million. SoundHound AI Reports Record Q2 and All-Time High Revenue
• Positive Sentiment: Management raised its 2026 revenue outlook to $230 million-$260 million, with the company citing strong OASYS momentum, faster deal conversion, broader enterprise adoption and improving margins despite continued investment. SOUN Q2 Earnings Call Focuses on OASYS and Higher Outlook
• Positive Sentiment: Glass Lewis recommended that LivePerson stockholders vote in favor of the proposed transaction with SoundHound at the August 20 special meeting, potentially improving the deal’s prospects and strengthening SoundHound’s conversational-AI capabilities. Glass Lewis Recommends Vote for SoundHound AI Transaction
• Positive Sentiment: Heavy call-option activity and SoundHound’s high short interest may have amplified the post-earnings rally through bullish positioning and short covering.
• Neutral Sentiment: DA Davidson maintained a “buy” rating but lowered its price target from $12 to $10, signaling continued long-term confidence while acknowledging valuation or execution risks.
• Negative Sentiment: Despite rapid growth, SoundHound remains unprofitable, with a substantial operating loss and continued cash burn. Analysts and valuation screens view the stock as expensive relative to sales, while Piper Sandler cut its target to $7 and kept a neutral rating.
• Negative Sentiment: Recent insider activity shows selling rather than purchases by executives, a potential confidence concern following the sharp multi-year advance.

Analyst Ratings Changes

Several equities analysts have recently issued reports on the company. LADENBURG THALM/SH SH upgraded SoundHound AI to a “strong-buy” rating in a research report on Wednesday, May 6th. DA Davidson cut their target price on SoundHound AI from $12.00 to $10.00 and set a “buy” rating on the stock in a research note on Thursday. Piper Sandler reduced their price target on SoundHound AI from $8.00 to $7.00 and set a “neutral” rating for the company in a research report on Thursday. Finally, Weiss Ratings reiterated a “sell (e+)” rating on shares of SoundHound AI in a research report on Monday, June 15th. One investment 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 assigned a Sell rating to the company. According to MarketBeat.com, the company presently has a consensus rating of “Moderate Buy” and an average price target of $14.07.

SoundHound AI Price Performance

The firm’s fifty day moving average price is $6.81 and its 200-day moving average price is $7.60. The firm has a market capitalization of $3.47 billion, a P/E ratio of -21.10 and a beta of 2.64.

SoundHound AI (NASDAQ:SOUN) last announced its earnings results on Wednesday, August 5th. The company reported ($0.02) EPS for the quarter, topping the consensus estimate of ($0.13) by $0.11. The firm had revenue of $61.90 million for the quarter, compared to analysts’ expectations of $42.56 million. SoundHound AI had a negative return on equity of 31.06% and a negative net margin of 67.45%.The firm’s quarterly revenue was up 45.0% compared to the same quarter last year. During the same quarter in the previous year, the company earned ($0.19) earnings per share. Analysts expect that SoundHound AI, Inc. will post -0.45 earnings per share for the current year.

Insider Activity at SoundHound AI

In related news, CEO Keyvan Mohajer sold 126,540 shares of the firm’s stock in a transaction dated Monday, June 15th. The stock was sold at an average price of $7.46, for a total transaction of $943,988.40. Following the completion of the transaction, the chief executive officer owned 1,947,237 shares of the company’s stock, valued at $14,526,388.02. This trade represents a 6.10% decrease in their ownership of the stock. The sale was disclosed in a filing with the SEC, which is available through the SEC website. The sale was made to cover tax withholding obligations related to the vesting of equity awards. Also, insider James Ming Hom sold 28,843 shares of SoundHound AI stock in a transaction dated Monday, June 15th. The stock was sold at an average price of $7.46, for a total value of $215,168.78. Following the transaction, the insider directly owned 743,521 shares in the company, valued at approximately $5,546,666.66. The trade was a 3.73% 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 sold 268,022 shares of company stock worth $1,999,444 in the last quarter. Company insiders own 8.84% of the company’s stock.

Hedge Funds Weigh In On SoundHound AI

Several hedge funds have recently made changes to their positions in the business. EP Wealth Advisors LLC lifted its holdings in shares of SoundHound AI by 5.3% in the second quarter. EP Wealth Advisors LLC now owns 14,100 shares of the company’s stock valued at $151,000 after purchasing an additional 706 shares in the last quarter. Newbridge Financial Services Group Inc. grew its holdings in shares of SoundHound AI by 2.7% during the third quarter. Newbridge Financial Services Group Inc. now owns 31,880 shares of the company’s stock valued at $513,000 after buying an additional 830 shares in the last quarter. Clear Creek Financial Management LLC grew its holdings in shares of SoundHound AI by 1.6% during the fourth quarter. Clear Creek Financial Management LLC now owns 58,091 shares of the company’s stock valued at $579,000 after buying an additional 941 shares in the last quarter. Parallel Advisors LLC raised its position in SoundHound AI by 42.8% during the third quarter. Parallel Advisors LLC now owns 3,204 shares of the company’s stock valued at $52,000 after buying an additional 960 shares during the period. Finally, Allspring Global Investments Holdings LLC raised its position in SoundHound AI by 5.5% during the fourth quarter. Allspring Global Investments Holdings LLC now owns 18,590 shares of the company’s stock valued at $197,000 after buying an additional 964 shares during the period. Institutional investors and hedge funds own 19.28% of the company’s stock.

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.