SoundHound AI (NASDAQ:SOUN) Shares Up 1.1% – What’s Next?

SoundHound AI, Inc. (NASDAQ:SOUN) shares rose 1.1% during mid-day trading on Thursday . The company traded as high as $7.48 and last traded at $7.48. 20,114,571 shares were traded during mid-day trading, a decline of 30% from the average daily volume of 28,920,412 shares. The stock had previously closed at $7.40.

Key Headlines Impacting SoundHound AI

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

• Positive Sentiment: SoundHound’s record second-quarter results are prompting higher estimates. Revenue reached $61.9 million, exceeding expectations by roughly $9.5 million and rising 45% year over year, while the adjusted loss of $0.02 per share was substantially better than the expected $0.13 loss. Management also raised its 2026 revenue outlook. SoundHound’s Q2 Results Fuel Estimate Hikes
• Positive Sentiment: The company’s OASYS platform, which helps businesses build voice-enabled AI agents, is viewed as a potential growth catalyst. Analysts and commentators believe adoption across automotive, restaurants and enterprise customers could accelerate revenue and support a stronger 2027. Should You Buy SoundHound AI Stock After Its 67% Plunge?
• Positive Sentiment: Northland Securities raised its SoundHound estimates for third-quarter 2026 EPS, full-year 2026 EPS and full-year 2027 EPS. Although the company is still expected to lose money, the revisions suggest improving operating expectations. SoundHound AI analyst estimates
• Positive Sentiment: Institutional Shareholder Services recommended that LivePerson shareholders approve the proposed transaction with SoundHound. ISS joins Glass Lewis in supporting the deal, reducing some execution uncertainty ahead of LivePerson’s August 20 special meeting. ISS recommends LivePerson-SoundHound transaction
• Neutral Sentiment: Wall Street’s average price target implies approximately 56% upside, but the coverage notes that consensus targets are unreliable by themselves. The more meaningful signal is the recent improvement in earnings estimates. Wall Street analysts believe SoundHound could rally
• Negative Sentiment: SoundHound remains unprofitable, with analysts expecting a roughly $0.36 per-share loss for 2026. Northland cut its fourth-quarter 2026 loss estimate to $0.11 per share, and the company’s cash burn and negative margins make its valuation vulnerable if growth slows.

Analyst Upgrades and Downgrades

A number of analysts recently weighed in on the company. Weiss Ratings restated a “sell (e+)” rating on shares of SoundHound AI in a research report on Monday, June 15th. Piper Sandler dropped their price objective on SoundHound AI from $8.00 to $7.00 and set a “neutral” rating for the company in a research note on Thursday, August 6th. DA Davidson cut their price target on shares of SoundHound AI from $12.00 to $10.00 and set a “buy” rating on the stock in a report on Thursday, August 6th. Finally, LADENBURG THALM/SH SH upgraded shares of SoundHound AI to a “strong-buy” rating in a research report on Wednesday, May 6th. One investment analyst has rated the stock with a Strong Buy rating, four have issued a Buy rating, three have issued a Hold rating and one has assigned a Sell rating to the stock. According to MarketBeat, the stock currently has a consensus rating of “Moderate Buy” and a consensus target price of $13.60.

SoundHound AI Stock Performance

The stock has a market capitalization of $3.24 billion, a P/E ratio of -19.68 and a beta of 2.64. The stock has a 50-day moving average price of $6.72 and a two-hundred day moving average price of $7.51.

SoundHound AI (NASDAQ:SOUN) last announced its earnings results on Wednesday, August 5th. The company reported ($0.02) EPS for the quarter, beating analysts’ consensus estimates of ($0.13) by $0.11. The company had revenue of $61.90 million during the quarter, compared to the consensus estimate of $52.38 million. SoundHound AI had a negative return on equity of 31.06% and a negative net margin of 67.45%.The firm’s revenue for the quarter was up 45.0% on a year-over-year basis. During the same quarter in the prior year, the company earned ($0.19) earnings per share. Equities analysts anticipate that SoundHound AI, Inc. will post -0.36 earnings per share for the current fiscal year.

Insider Transactions at SoundHound AI

In other news, insider James Ming Hom sold 28,843 shares of SoundHound AI stock in a transaction dated Monday, June 15th. The shares were sold at an average price of $7.46, for a total transaction of $215,168.78. Following the sale, the insider owned 743,521 shares of the company’s stock, valued at approximately $5,546,666.66. The trade was a 3.73% decrease in their position. The sale was disclosed in a document filed with the SEC, which is accessible through this hyperlink. The sale was made to cover tax withholding obligations related to the vesting of equity awards. Also, CTO Timothy Stonehocker sold 18,802 shares of the business’s stock in a transaction dated Monday, June 15th. The shares were sold at an average price of $7.46, for a total transaction of $140,262.92. Following the transaction, the chief technology officer owned 502,290 shares in the company, valued at $3,747,083.40. This represents a 3.61% decrease in their position. The SEC filing for this sale provides additional information. The sale was made to cover tax withholding obligations related to the vesting of equity awards. In the last 90 days, insiders sold 268,022 shares of company stock worth $1,999,444. 8.84% of the stock is owned by corporate insiders.

Institutional Inflows and Outflows

Several institutional investors have recently made changes to their positions in the company. EP Wealth Advisors LLC boosted its position in shares of SoundHound AI by 5.3% during the second quarter. EP Wealth Advisors LLC now owns 14,100 shares of the company’s stock valued at $151,000 after buying an additional 706 shares during the last quarter. Newbridge Financial Services Group Inc. lifted its stake in SoundHound AI by 2.7% during 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 during the period. Parallel Advisors LLC boosted its holdings in shares of SoundHound AI by 42.8% during the 3rd quarter. Parallel Advisors LLC now owns 3,204 shares of the company’s stock valued at $52,000 after acquiring an additional 960 shares during the last quarter. Northwestern Mutual Wealth Management Co. grew its stake in shares of SoundHound AI by 83.1% in the second 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. Finally, Integrated Wealth Concepts LLC raised its holdings in shares of SoundHound AI by 8.9% during the first quarter. Integrated Wealth Concepts LLC now owns 14,676 shares of the company’s stock valued at $119,000 after purchasing an additional 1,201 shares during the last quarter. Institutional investors own 19.28% of the company’s stock.

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.