SoundHound AI (NASDAQ:SOUN) Shares Down 7.7% – Here’s Why

SoundHound AI, Inc. (NASDAQ:SOUN)’s share price dropped 7.7% during trading on Tuesday . The stock traded as low as $6.36 and last traded at $6.36. Approximately 22,139,720 shares changed hands during trading, a decline of 19% from the average daily volume of 27,395,867 shares. The stock had previously closed at $6.89.

More SoundHound AI News

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

• Positive Sentiment: Industry recognition: SoundHound was named a leader in The Aragon Research Globe for Agent Platforms 2026, highlighting its omnichannel agent platform and conversational AI — a signal that the company’s product positioning is resonating with analysts and potential enterprise customers. Aragon Research Globe press release
• Positive Sentiment: Bullish coverage/long‑term thesis: Feature pieces and analysts highlight SoundHound’s addressable opportunity in voice‑powered, agentic AI and note strong revenue growth (recent quarter beat and ~59% YoY revenue growth), supporting a multi‑year upside case for patient investors. Example coverage: Fool upside feature
• Positive Sentiment: Institutional accumulation: Recent 13F/ownership notes show hedge funds and institutions (including Goldman Sachs and RBC) increasing positions, which provides buyer support beneath the headline noise. MarketBeat ownership/analysis
• Neutral Sentiment: Analyst consensus target: Broker consensus target sits near $14.93 — well above current levels, indicating expectations of recovery over time but not an immediate catalyst. Consensus target report
• Neutral Sentiment: Short‑interest reporting appears to show zero/NaN changes for March — likely a data/reporting artifact and not a clear signal of fresh short‑pressure today.
• Negative Sentiment: Large, coordinated insider selling: Multiple senior executives (CEO, CFO, COO, CTO, SVP and others) sold material blocks around Mar. 20 at ~\$6.79 per share. Such concentrated insider sales often create near‑term supply and investor concern. Example SEC filing for the CEO sale: CEO SEC filing
• Negative Sentiment: High‑profile criticism: Jim Cramer labeled SoundHound a “continual money loser” on Mad Money — negative commentary from influential media figures can amplify selling pressure from retail and momentum traders. Jim Cramer comment
• Negative Sentiment: Sector/competitive headline risk: A Yahoo/market roundup tied a pullback in AI names to Anthropic’s announcement that Claude can control computers — that development spurred an AI‑related sell‑off and raised competitive/feature‑race concerns for voice/assistant vendors. Yahoo Market roundup

Analyst Ratings Changes

Several brokerages recently issued reports on SOUN. Zacks Research upgraded SoundHound AI from a “strong sell” rating to a “hold” rating in a report on Monday, February 9th. Weiss Ratings restated a “sell (d-)” rating on shares of SoundHound AI in a research note on Friday, January 9th. Cantor Fitzgerald raised SoundHound AI from a “neutral” rating to an “overweight” rating and upped their target price for the stock from $13.00 to $15.00 in a research report on Friday, December 12th. LADENBURG THALM/SH SH raised SoundHound AI to a “strong-buy” rating in a research note on Thursday, December 18th. Finally, HC Wainwright lowered their price target 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 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’s stock. According to data from MarketBeat.com, the company has a consensus rating of “Moderate Buy” and an average target price of $14.93.

SoundHound AI Stock Performance

The firm has a market cap of $2.56 billion, a price-to-earnings ratio of -121.18 and a beta of 2.65. The firm’s 50 day moving average is $8.39 and its 200-day moving average is $12.17.

SoundHound AI (NASDAQ:SOUN) last posted its earnings results on Thursday, February 26th. The company reported ($0.02) earnings per share for the quarter, meeting the consensus estimate of ($0.02). SoundHound AI had a negative return on equity of 3.63% and a negative net margin of 8.71%.The company had revenue of $55.06 million for the quarter, compared to analyst estimates of $53.88 million. During the same period last year, the company earned ($0.05) earnings per share. The business’s revenue was up 59.4% compared to the same quarter last year. As a group, research analysts predict that SoundHound AI, Inc. will post -0.38 EPS for the current year.

Insiders Place Their Bets

In other SoundHound AI news, COO Michael Zagorsek sold 52,968 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 transaction of $359,652.72. Following the completion of the sale, the chief operating officer owned 1,734,491 shares of the company’s stock, valued at $11,777,193.89. This represents a 2.96% decrease in their ownership of the stock. The sale was disclosed in a document filed with the Securities & Exchange Commission, which is available through the SEC website. 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 transaction, the chief financial officer owned 1,661,121 shares in the company, valued at approximately $11,279,011.59. This trade represents a 2.58% decrease in their position. Additional details regarding this sale are available in the official SEC disclosure. Insiders sold 370,390 shares of company stock worth $2,796,241 in the last three months. 9.17% of the stock is owned by insiders.

Institutional Trading of SoundHound AI

Large investors have recently modified their holdings of the company. Northwestern Mutual Wealth Management Co. raised its holdings in SoundHound AI by 83.1% in the 2nd quarter. Northwestern Mutual Wealth Management Co. now owns 2,336 shares of the company’s stock worth $25,000 after acquiring an additional 1,060 shares during the period. Dogwood Wealth Management LLC boosted its holdings in SoundHound AI by 152.1% during the fourth quarter. Dogwood Wealth Management LLC now owns 2,559 shares of the company’s stock valued at $26,000 after acquiring an additional 1,544 shares during the period. Danske Bank A S bought a new stake in SoundHound AI during the third quarter valued at about $26,000. Advisors Asset Management Inc. grew its position in shares of SoundHound AI by 68.4% in the second quarter. Advisors Asset Management Inc. now owns 2,519 shares of the company’s stock valued at $27,000 after purchasing an additional 1,023 shares during the last quarter. Finally, SHP Wealth Management acquired a new stake in shares of SoundHound AI in the fourth quarter valued at about $27,000. 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.