SoundHound AI (NASDAQ:SOUN) Shares Gap Up – Should You Buy?

SoundHound AI, Inc. (NASDAQ:SOUN)’s stock price gapped up prior to trading on Thursday . The stock had previously closed at $6.43, but opened at $8.05. SoundHound AI shares last traded at $7.2060, with a volume of 26,492,371 shares.

Key SoundHound AI News

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

• Positive Sentiment: Revenue reached a record $61.9 million, up 45% year over year and well above analyst estimates near $52–$53 million. Gross profit increased 67.6% to $27.9 million, indicating improving operating leverage as demand grows for SoundHound’s voice and agentic AI platform. SoundHound AI Reports Record Q2 and All-Time High Revenue
• Positive Sentiment: The company exceeded earnings expectations: GAAP loss was $0.10 per share versus the $0.13 consensus, while adjusted results were also better than expected. Management cited OASYS and enterprise adoption as key growth drivers. SoundHound AI Reports Bullish Q2
• Positive Sentiment: SoundHound raised its full-year 2026 revenue outlook to $230 million–$260 million, with the midpoint above the roughly $232.5 million analyst forecast. The stronger outlook helped support the bullish reaction. SoundHound AI Second-Quarter Revenue Rises
• Neutral Sentiment: The company continues pursuing its LivePerson acquisition, while LivePerson is promoting the transaction ahead of its investor town hall. The deal could broaden SoundHound’s conversational AI capabilities, but approval and execution remain unresolved. SoundHound AI Pushes LivePerson Deal
• Negative Sentiment: Despite better-than-expected revenue, SoundHound remained unprofitable, reporting a $42.8 million net loss, a $43.3 million operating loss and $33.7 million of operating cash outflow. The company ended the quarter with $215.6 million in cash. SoundHound AI Stock Rises on Q2 Earnings
• Negative Sentiment: Short interest reportedly represents about 42% of the float, creating volatility and the potential for sharp swings in either direction. Separately, reported insider activity over the past six months consisted of sales rather than purchases, which may weigh on investor confidence. SoundHound AI Leads Most Shorted Stocks

Wall Street Analysts Forecast Growth

SOUN has been the subject of several research reports. LADENBURG THALM/SH SH raised SoundHound AI to a “strong-buy” rating in a report on Wednesday, May 6th. Weiss Ratings restated a “sell (e+)” rating on shares of SoundHound AI in a research note on Monday, June 15th. Finally, DA Davidson reaffirmed a “buy” rating and set a $14.00 price target on shares of SoundHound AI in a research report on Wednesday, April 22nd. One research analyst has rated the stock with a Strong Buy rating, five have issued a Buy rating, three have issued a Hold rating and one has assigned a Sell rating to the company. According to MarketBeat, the company has an average rating of “Moderate Buy” and a consensus price target of $14.93.

SoundHound AI Stock Performance

The business has a 50 day moving average of $6.84 and a 200-day moving average of $7.63. The company has a market capitalization of $3.15 billion, a P/E ratio of -15.46 and a beta of 2.64.

SoundHound AI (NASDAQ:SOUN) last issued its earnings results on Thursday, May 7th. The company reported ($0.06) EPS for the quarter, missing the consensus estimate of ($0.05) by ($0.01). The company had revenue of $44.20 million during the quarter, compared to the consensus estimate of $42.56 million. SoundHound AI had a negative return on equity of 40.15% and a negative net margin of 91.84%.The firm’s revenue for the quarter was up 51.7% compared to the same quarter last year. During the same quarter in the prior year, the business earned ($0.06) EPS. As a group, equities analysts forecast that SoundHound AI, Inc. will post -0.45 EPS for the current fiscal year.

Insider Transactions at SoundHound AI

In other news, SVP Majid Emami sold 28,843 shares of the stock in a transaction dated Monday, June 15th. The shares were sold at an average price of $7.46, for a total value of $215,168.78. Following the sale, the senior vice president directly owned 472,983 shares of the company’s stock, valued at approximately $3,528,453.18. This represents a 5.75% decrease in their ownership of the stock. The sale was disclosed in a filing with the SEC, which can be accessed through the SEC website. 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 firm’s stock in a transaction that occurred on Monday, June 15th. The shares were sold at an average price of $7.46, for a total transaction of $140,262.92. Following the completion of the transaction, the chief technology officer owned 502,290 shares of the company’s stock, valued at $3,747,083.40. This trade represents a 3.61% decrease in their ownership of the stock. 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 valued at $1,999,444. Company insiders own 8.84% of the company’s stock.

Institutional Inflows and Outflows

Institutional investors have recently made changes to their positions in the company. Vanguard Group Inc. increased its stake in SoundHound AI by 4.4% in the 4th quarter. Vanguard Group Inc. now owns 45,367,437 shares of the company’s stock worth $452,313,000 after acquiring an additional 1,909,868 shares during the last quarter. Geode Capital Management LLC boosted its position in shares of SoundHound AI by 3.1% during the 4th quarter. Geode Capital Management LLC now owns 9,180,321 shares of the company’s stock valued at $91,543,000 after acquiring an additional 273,097 shares during the last quarter. Morgan Stanley boosted its position in shares of SoundHound AI by 48.1% during the 4th quarter. Morgan Stanley now owns 8,987,522 shares of the company’s stock valued at $89,606,000 after acquiring an additional 2,917,280 shares during the last quarter. State Street Corp grew its holdings in shares of SoundHound AI by 0.9% during the fourth quarter. State Street Corp now owns 8,691,235 shares of the company’s stock worth $86,652,000 after purchasing an additional 80,908 shares in the last quarter. Finally, UBS Group AG grew its holdings in shares of SoundHound AI by 77.6% during the fourth 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. 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.