SoundHound AI (NASDAQ:SOUN) Trading Down 4.1% – Here’s Why

SoundHound AI, Inc. (NASDAQ:SOUN)’s share price dropped 4.1% on Wednesday . The stock traded as low as $8.15 and last traded at $8.16. Approximately 18,768,158 shares changed hands during trading, a decline of 31% from the average daily volume of 27,179,471 shares. The stock had previously closed at $8.51.

SoundHound AI News Summary

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

• Positive Sentiment: Company posted record 2025 results — revenue of $168.9M (roughly 100% YoY) and Q4 revenue of $55.1M (up ~59%), underscoring accelerating enterprise demand for voice/AI products. SoundHound AI (SOUN) Reports 2025 Revenue of $168.9M, 100% YoY Growth
• Positive Sentiment: Management projects continued growth into 2026 (firm-level commentary and analyst coverage cite a 2026 revenue outlook in the $225M–$260M range), which supports longer-term upside if execution holds. SoundHound’s 59% Revenue Surge in 2025: What Does 2026 Hold?
• Positive Sentiment: Product and geographic expansion: rollout of a “Sales Assist” voice AI for retail and a new Bengaluru innovation hub could accelerate go‑to‑market and lower R&D/operating costs long-term. SoundHound AI Expands With Sales Assist Rollout And Bengaluru Hub
• Neutral Sentiment: Extremely high short interest (>35% of float) increases volatility — could amplify downward pressure but also raises squeeze speculation; this makes trading choppy regardless of fundamentals. SoundHound Is One of the Most Short Stocks Right Now. Should You Bet on a SOUN Squeeze?
• Negative Sentiment: H.C. Wainwright cut its price target from $26 to $20 (but kept a Buy rating), signaling valuation/near-term risk despite growth — this likely pressured the stock as investors recalibrate upside. HC Wainwright lowered its price target on SoundHound AI, Inc. (SOUN) to $20 and maintains a buy rating
• Negative Sentiment: Analyst pieces and market commentary highlight that SOUN remains unprofitable (negative EPS and margins) and faces valuation risk; several articles flag the stock as risky and note recent share weakness, contributing to selling pressure. Should You Buy, Sell or Hold SoundHound Stock Post Q4 Earnings?
• Negative Sentiment: Coverage pieces and at least one noted analyst downgrade have amplified caution among investors, reinforcing the pullback despite strong revenue prints. SoundHound AI (NASDAQ:SOUN) Stock Price Down 1.3% on Analyst Downgrade

Wall Street Analysts Forecast Growth

SOUN has been the topic of a number of recent research reports. Piper Sandler reissued a “neutral” rating and set a $9.00 price target (down from $11.00) on shares of SoundHound AI in a research report on Friday, February 27th. HC Wainwright dropped their price objective on SoundHound AI from $26.00 to $20.00 and set a “buy” rating on the stock in a research report on Monday. Zacks Research upgraded SoundHound AI from a “strong sell” rating to a “hold” rating in a research note on Monday, February 9th. Weiss Ratings reiterated a “sell (d-)” rating on shares of SoundHound AI in a report on Friday, January 9th. Finally, Cantor Fitzgerald upgraded shares of SoundHound AI from a “neutral” rating to an “overweight” rating and raised their price target for the company from $13.00 to $15.00 in a report on Friday, December 12th. One investment analyst has rated the stock with a Strong Buy rating, five have issued a Buy rating, three have given a Hold rating and one has assigned a Sell rating to the stock. According to MarketBeat, the company currently has an average rating of “Moderate Buy” and a consensus target price of $14.93.

SoundHound AI Stock Down 2.4%

The firm has a market capitalization of $3.39 billion, a price-to-earnings ratio of -161.37 and a beta of 2.65. The company’s 50 day moving average price is $9.37 and its 200 day moving average price is $12.71.

SoundHound AI (NASDAQ:SOUN) last posted its quarterly earnings results on Thursday, February 26th. The company reported ($0.02) earnings per share (EPS) for the quarter, hitting analysts’ consensus estimates of ($0.02). The company had revenue of $55.06 million during the quarter, compared to analyst estimates of $53.88 million. SoundHound AI had a negative net margin of 8.71% and a negative return on equity of 3.63%. SoundHound AI’s revenue for the quarter was up 59.4% compared to the same quarter last year. During the same period last year, the firm posted ($0.05) EPS. As a group, analysts expect 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, CEO Keyvan Mohajer sold 144,326 shares of the company’s stock in a transaction dated Monday, December 22nd. The shares were sold at an average price of $11.28, for a total value of $1,627,997.28. Following the completion of the transaction, the chief executive officer owned 2,198,287 shares in the company, valued at approximately $24,796,677.36. This represents a 6.16% decrease in their ownership of the stock. The sale was disclosed in a legal filing with the SEC, which is accessible through this link. Also, SVP Majid Emami sold 32,741 shares of the firm’s stock in a transaction dated Friday, December 26th. The shares were sold at an average price of $10.66, for a total value of $349,019.06. Following the sale, the senior vice president owned 532,845 shares in the company, valued at $5,680,127.70. This trade represents a 5.79% decrease in their ownership of the stock. Additional details regarding this sale are available in the official SEC disclosure. Insiders have sold 460,922 shares of company stock valued at $5,199,073 in the last quarter. 9.17% of the stock is currently owned by insiders.

Institutional Investors Weigh In On SoundHound AI

Several hedge funds and other institutional investors have recently made changes to their positions in the stock. SHP Wealth Management acquired a new position in SoundHound AI during the fourth quarter worth $27,000. Virtu Financial LLC raised its stake in SoundHound AI by 43.9% during the fourth quarter. Virtu Financial LLC now owns 219,773 shares of the company’s stock worth $2,191,000 after purchasing an additional 67,088 shares during the period. Alpine Woods Capital Investors LLC raised its stake in SoundHound AI by 143.0% during the fourth quarter. Alpine Woods Capital Investors LLC now owns 50,742 shares of the company’s stock worth $506,000 after purchasing an additional 29,857 shares during the period. Vident Advisory LLC boosted its holdings in SoundHound AI by 16.2% in the 4th quarter. Vident Advisory LLC now owns 27,840 shares of the company’s stock valued at $278,000 after purchasing an additional 3,875 shares during the last quarter. Finally, EP Wealth Advisors LLC purchased a new stake in shares of SoundHound AI in the 4th quarter valued at approximately $146,000. 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.