SoundHound AI (NASDAQ:SOUN) Stock Price Down 1.9% – Should You Sell?

SoundHound AI, Inc. (NASDAQ:SOUN)’s share price dropped 1.9% during trading on Thursday . The company traded as low as $7.68 and last traded at $7.70. Approximately 43,162,255 shares changed hands during mid-day trading, an increase of 65% from the average daily volume of 26,136,846 shares. The stock had previously closed at $7.85.

Trending Headlines about SoundHound AI

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

• Positive Sentiment: Platform expansion and revenue strength: Coverage notes SoundHound is leaning into automation/agentic AI and that revenue nearly doubled in 2025 — a fundamental narrative investors can point to as a catalyst for adoption by enterprises. Article Title
• Positive Sentiment: Heavy call-option flow and short-squeeze chatter: Multiple reports cite unusually large call option volume (92,140 calls traded) and active short-squeeze discussion, which contributed to large intraday rallies and can amplify upside in the near term as traders cover shorts. Article Title
• Positive Sentiment: Options market signals bullish momentum ahead: Analysis of options flow suggests participants expect further upside through the year, supporting the view that derivatives-driven trading is an important near-term driver. Article Title
• Neutral Sentiment: Price action and short-term rallies: Recent pieces document back-to-back intraday rallies (including 6% and 9% moves) without major company-specific news, indicating momentum trading rather than new fundamentals. Article Title
• Neutral Sentiment: Modest daily upticks reported: Market summaries show small day-over-day gains in recent sessions, reflecting short-term momentum but not yet a clear trend change. Article Title
• Negative Sentiment: Risk: volatility and fundamentals—SOUN remains unprofitable, has a high beta, and the current move looks driven largely by options/short-covering rather than new earnings beats; that raises the risk of sharp reversals after earnings or if speculative interest fades.

Analyst Ratings Changes

SOUN has been the subject of a number of research reports. HC Wainwright decreased their price objective on shares of SoundHound AI from $26.00 to $20.00 and set a “buy” rating for the company in a report on Monday, March 2nd. Piper Sandler reissued a “neutral” rating and set a $9.00 price target (down from $11.00) on shares of SoundHound AI in a report on Friday, February 27th. Weiss Ratings reissued a “sell (d-)” rating on shares of SoundHound AI in a report on Friday, January 9th. DA Davidson set a $14.00 price target on shares of SoundHound AI in a report on Thursday, January 8th. Finally, LADENBURG THALM/SH SH raised shares of SoundHound AI to a “strong-buy” rating in a report on Thursday, December 18th. 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 given a Sell rating to the company. According to data from MarketBeat.com, the company presently has an average rating of “Moderate Buy” and an average price target of $14.93.

SoundHound AI Stock Down 1.9%

The firm’s 50-day simple moving average is $7.45 and its 200 day simple moving average is $11.23. The stock has a market capitalization of $3.26 billion, a P/E ratio of -153.97 and a beta of 2.71.

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

Insider Transactions at SoundHound AI

In other SoundHound AI news, CFO Nitesh Sharan sold 44,027 shares of the business’s stock in a transaction dated Friday, March 20th. The shares were sold at an average price of $6.79, for a total value of $298,943.33. Following the sale, the chief financial officer directly owned 1,661,121 shares in the company, valued at approximately $11,279,011.59. The trade was a 2.58% decrease in their ownership of the stock. The sale was disclosed in a legal filing with the Securities & Exchange Commission, which can be accessed through this hyperlink. Also, insider James Ming Hom sold 31,019 shares of the business’s stock in a transaction dated Friday, March 20th. The stock was sold at an average price of $6.79, for a total transaction of $210,619.01. Following the completion of the sale, the insider owned 772,364 shares in the company, valued at approximately $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 sold 307,973 shares of company stock valued at $2,091,110 in the last quarter. 9.17% of the stock is owned by company insiders.

Hedge Funds Weigh In On SoundHound AI

A number of institutional investors have recently bought and sold shares of SOUN. Vanguard Group Inc. increased its stake in SoundHound AI by 16.4% in the 3rd quarter. Vanguard Group Inc. now owns 43,457,569 shares of the company’s stock worth $698,798,000 after purchasing an additional 6,132,648 shares in the last quarter. Morgan Stanley increased its stake in SoundHound AI by 48.1% in the 4th quarter. Morgan Stanley now owns 8,987,522 shares of the company’s stock worth $89,606,000 after purchasing an additional 2,917,280 shares in the last quarter. UBS Group AG increased its stake in SoundHound AI by 77.6% in the 4th quarter. UBS Group AG now owns 6,124,283 shares of the company’s stock worth $61,059,000 after purchasing an additional 2,676,707 shares in the last quarter. Voloridge Investment Management LLC increased its stake in SoundHound AI by 2,259.7% in the 4th quarter. Voloridge Investment Management LLC now owns 2,199,511 shares of the company’s stock worth $21,929,000 after purchasing an additional 2,106,298 shares in the last quarter. Finally, Jump Financial LLC purchased a new position in SoundHound AI in the 3rd quarter worth about $21,679,000. Hedge funds and other institutional investors 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.