AXQ Capital LP Has $1.65 Million Stock Holdings in SoundHound AI, Inc. $SOUN

Key Points

• AXQ Capital increased its SoundHound AI position by 395.6% in the second quarter, owning 254,744 shares valued at approximately $1.65 million. Institutional investors and hedge funds collectively own 19.28% of the company.
• SoundHound AI reported a quarterly loss of $0.02 per share, beating expectations, while revenue rose 45% year over year to $61.9 million. Despite the improvement, the company remains unprofitable, with a negative net margin of 67.45%.
• Analyst sentiment is mixed: SoundHound retains a “Moderate Buy” consensus rating with a $13.60 target price, although several analysts recently reduced their price targets. Shares opened at $6.74, well below their 52-week high of $22.17.

AXQ Capital LP lifted its position in SoundHound AI, Inc. (NASDAQ:SOUN - Free Report) by 395.6% during the 2nd quarter, according to the company in its most recent filing with the SEC. The fund owned 254,744 shares of the company's stock after purchasing an additional 203,345 shares during the quarter. AXQ Capital LP owned 0.06% of SoundHound AI worth $1,648,000 at the end of the most recent reporting period.

Other hedge funds have also made changes to their positions in the company. Morgan Stanley boosted its holdings in shares of 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 acquiring an additional 2,917,280 shares in the last quarter. Voloridge Investment Management LLC grew its holdings in shares of SoundHound AI by 2,259.7% during the fourth 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 during the last quarter. Jump Financial LLC bought a new stake in shares of SoundHound AI during the third quarter worth $21,679,000. HRT Financial LP acquired a new stake in shares of SoundHound AI in the second quarter valued at $11,914,000. Finally, Goldman Sachs Group Inc. increased its stake in shares of SoundHound AI by 69.8% in the first quarter. Goldman Sachs Group Inc. now owns 2,639,689 shares of the company's stock valued at $21,434,000 after buying an additional 1,085,473 shares in the last quarter. Institutional investors and hedge funds own 19.28% of the company's stock.

SoundHound AI Stock Performance

Shares of NASDAQ SOUN opened at $6.74 on Friday. The business's 50 day moving average is $6.75 and its 200-day moving average is $7.34. SoundHound AI, Inc. has a 1-year low of $5.65 and a 1-year high of $22.17. The firm has a market cap of $2.99 billion, a P/E ratio of -17.74 and a beta of 2.66.

SoundHound AI (NASDAQ:SOUN - Get Free Report) last released its quarterly earnings results on Wednesday, August 5th. The company reported ($0.02) EPS for the quarter, beating the consensus estimate of ($0.13) by $0.11. SoundHound AI had a negative net margin of 67.45% and a negative return on equity of 30.22%. The business had revenue of $61.90 million for the quarter, compared to the consensus estimate of $52.38 million. During the same period in the prior year, the company posted ($0.19) earnings per share. SoundHound AI's revenue was up 45.0% compared to the same quarter last year. Analysts forecast that SoundHound AI, Inc. will post -0.33 EPS for the current year.

Insiders Place Their Bets

In other SoundHound AI news, CTO Timothy Stonehocker sold 18,802 shares of the firm's stock in a transaction on Monday, June 15th. The stock was 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 trade represents a 3.61% decrease in their position. The transaction was disclosed in a legal filing with the Securities & Exchange Commission, which is available at the SEC website. The sale was made to cover tax withholding obligations related to the vesting of equity awards. Also, CEO Keyvan Mohajer sold 126,540 shares of SoundHound AI stock in a transaction on Monday, June 15th. The shares were sold at an average price of $7.46, for a total value of $943,988.40. Following the completion of the transaction, the chief executive officer directly owned 1,947,237 shares of the company's stock, valued at $14,526,388.02. This represents a 6.10% decrease in their ownership of the stock. The disclosure for this sale is available in the SEC filing. The sale was made to cover tax withholding obligations related to the vesting of equity awards. Insiders sold a total of 269,365 shares of company stock valued at $2,009,047 in the last quarter. Company insiders own 8.84% of the company's stock.

Analyst Ratings Changes

Several research analysts recently issued reports on SOUN shares. DA Davidson reduced their price target on shares of SoundHound AI from $12.00 to $10.00 and set a "buy" rating on the stock in a research report on Thursday, August 6th. Wall Street Zen cut shares of SoundHound AI from a "sell" rating to a "strong sell" rating in a research note on Saturday. Piper Sandler lowered their price target on shares of SoundHound AI from $8.00 to $7.00 and set a "neutral" rating for the company in a report on Thursday, August 6th. Finally, Weiss Ratings restated a "sell (e+)" rating on shares of SoundHound AI in a research report on Monday, June 15th. One analyst has rated the stock with a Strong Buy rating, four have given a Buy rating, three have given a Hold rating and one has given a Sell rating to the stock. Based on data from MarketBeat, SoundHound AI currently has a consensus rating of "Moderate Buy" and a consensus target price of $13.60.

Key Stories Impacting SoundHound AI

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

• Positive Sentiment: LivePerson acquisition completed: SoundHound officially closed its acquisition of LivePerson, removing a major transaction uncertainty and combining SoundHound’s voice-AI technology with LivePerson’s customer-engagement and omnichannel capabilities. The enlarged platform is expected to broaden SoundHound’s customer base and revenue opportunities. SoundHound AI Completes Acquisition of LivePerson
• Positive Sentiment: New CFO appointed: John Collins will serve as CFO of the combined company, providing dedicated financial leadership as SoundHound integrates LivePerson and pursues its expansion strategy. SoundHound AI Completes Acquisition of LivePerson
• Positive Sentiment: Growth potential remains substantial: Prior coverage highlighted management’s projection for combined revenue of approximately $350 million to $400 million next year if the LivePerson deal closes. The acquisition could accelerate SoundHound’s scale across voice, customer-service and AI-agent applications. Where Will SoundHound AI Stock Be in 1 Year?
• Neutral Sentiment: Shareholder approval cleared the final major hurdle: LivePerson investors approved the transaction, allowing the companies to proceed to closing. The completed deal now shifts attention from regulatory and voting risk to integration, execution and the financial impact of the combination. SoundHound AI Wins Stockholder Approval
• Negative Sentiment: Valuation remains a concern: Despite a roughly 188% three-year gain, recent analysis continues to characterize SOUN as expensive on market multiples. Investors may demand evidence that the LivePerson acquisition can produce profitable growth before assigning the shares a higher valuation. Is SoundHound AI Getting Too Rich?
• Negative Sentiment: Profitability and post-earnings pressure persist: SoundHound’s latest quarter beat EPS and revenue expectations, with revenue up 45% year over year, but the company remains unprofitable. The stock has weakened since earnings as investors focus on future estimates, execution risk and the path to sustainable profits. Why Is SoundHound AI Down Since Its Last Earnings Report?
• Positive Sentiment: High short interest could amplify volatility: Nearly 40% short interest creates potential for a short squeeze if the acquisition produces strong operating results, although it also signals considerable skepticism among investors. SoundHound Stock and Short Interest

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.

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