Clear Street Group Inc. Buys New Shares in SoundHound AI, Inc. $SOUN

Key Points

• Clear Street Group opened a new position in SoundHound AI, buying 805,000 shares (~$12.94M), representing roughly 0.20% of the company, while other institutions — notably Vanguard — also materially increased stakes.
• SoundHound's latest quarter beat revenue estimates with $55.06M (up 59.4% YoY) and EPS of −$0.02 (met expectations), but the company remains unprofitable with a negative net margin; shares trade around $7.30 and the market cap is about $3.07B.
• Market sentiment is mixed: the consensus is a "Moderate Buy" with an average price target of $14.93 amid bullish takes on its voice/Agentic AI and strong guidance, yet there are downgrades, high-profile skepticism (e.g., Jim Cramer calling it a "meme stock") and notable insider selling.

Clear Street Group Inc. purchased a new position in SoundHound AI, Inc. (NASDAQ:SOUN - Free Report) in the 3rd quarter, according to its most recent Form 13F filing with the Securities and Exchange Commission (SEC). The fund purchased 805,000 shares of the company's stock, valued at approximately $12,944,000. Clear Street Group Inc. owned about 0.20% of SoundHound AI as of its most recent SEC filing.

Other institutional investors have also added to or reduced their stakes in the company. Vanguard Group Inc. lifted its stake in shares of SoundHound AI by 16.4% in the 3rd quarter. Vanguard Group Inc. now owns 43,457,569 shares of the company's stock valued at $698,798,000 after acquiring an additional 6,132,648 shares during the last quarter. Jump Financial LLC bought a new position in SoundHound AI during the 3rd quarter worth approximately $21,679,000. HRT Financial LP purchased a new position in SoundHound AI in the 2nd quarter worth approximately $11,914,000. Goldman Sachs Group Inc. lifted its position in 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 purchasing an additional 1,085,473 shares during the last quarter. Finally, Bank of New York Mellon Corp lifted its position in SoundHound AI by 91.6% in the second quarter. Bank of New York Mellon Corp now owns 1,762,827 shares of the company's stock valued at $18,915,000 after purchasing an additional 842,973 shares during the last quarter. 19.28% of the stock is currently owned by hedge funds and other institutional investors.

Wall Street Analyst Weigh In

Several brokerages have recently issued reports on SOUN. HC Wainwright cut their target price on shares of SoundHound AI from $26.00 to $20.00 and set a "buy" rating on the stock in a report on Monday, March 2nd. Piper Sandler reiterated 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. Zacks Research raised shares of 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 report on Friday, January 9th. Finally, Cantor Fitzgerald raised shares of SoundHound AI from a "neutral" rating to an "overweight" rating and upped their price objective for the company from $13.00 to $15.00 in a research note on Friday, December 12th. One research analyst has rated the stock with a Strong Buy rating, five have issued a Buy rating, three have given a Hold rating and one has issued a Sell rating to the company. According to data from MarketBeat, the company has an average rating of "Moderate Buy" and an average price target of $14.93.

SoundHound AI Stock Down 2.3%

Shares of SoundHound AI stock opened at $7.30 on Friday. The business has a 50 day moving average of $9.07 and a 200 day moving average of $12.50. SoundHound AI, Inc. has a 52 week low of $6.52 and a 52 week high of $22.17. The company has a market cap of $3.07 billion, a PE ratio of -145.97 and a beta of 2.65.

SoundHound AI (NASDAQ:SOUN - Get Free Report) last released its quarterly earnings results on Thursday, February 26th. The company reported ($0.02) earnings per share for the quarter, meeting the consensus estimate of ($0.02). The business had revenue of $55.06 million for the quarter, compared to analysts' expectations of $53.88 million. SoundHound AI had a negative net margin of 8.71% and a negative return on equity of 3.63%. The firm's revenue for the quarter was up 59.4% compared to the same quarter last year. During the same quarter in the previous year, the business posted ($0.05) earnings per share. On average, research analysts anticipate that SoundHound AI, Inc. will post -0.38 earnings per share for the current year.

Key SoundHound AI News

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

• Positive Sentiment: Reported record 2025 results, doubled revenue to $168.9M, issued strong 2026 guidance and announced new automotive and restaurant partnerships — these operational beats and commercial traction support revenue growth expectations and justify bullish analyst models. SoundHound AI (SOUN) Valuation Check After Record 2025 Results Strong 2026 Guidance And New Partnerships
• Positive Sentiment: Bullish analyst views argue recent sell-off created a buying opportunity: Seeking Alpha and other bulls forecast continued high-growth SaaS revenue and long-term margin expansion (management targets 70%+ gross margins) that could materially lift valuation if achieved. SoundHound: Meltdown's A Gift - Voice AI SaaS Leader Is Cheap Now
• Positive Sentiment: Analysts highlight the company’s Agentic AI / voice-first platform as a scalable engine across cars, call centers and apps — continued enterprise adoption and recurring subscription bookings underpin growth forecasts. Can SoundHound's Agentic AI Platform Power the Next Phase of Growth?
• Neutral Sentiment: Comparisons with Amazon (AMZN) underline both opportunity and risk: SoundHound’s focused voice stack can win niche enterprise deals, but Amazon’s AWS/AI scale and ecosystem remain a material competitive overhang. This dynamic keeps upside conditional on execution. SoundHound vs. Amazon: Which AI Voice Assistant Stock Wins?
• Neutral Sentiment: Long-term upside scenarios (e.g., multi‑bag returns by 2030) are possible but require sustained ~50–60%+ CAGR revenue growth — achievable per bull cases but high execution risk. Investors should weigh growth assumptions against margin and cash‑flow timelines. SoundHound AI: Could the Stock 10X by 2030?
• Negative Sentiment: High-profile skepticism: Jim Cramer described SOUN as “one of those companies that is a meme stock,” a comment that can amplify retail-driven selling and volatility. Jim Cramer on SoundHound AI: “This Is One of Those Companies That Is a Meme Stock”
• Negative Sentiment: Broader caution in software/AI names and large historical drawdowns (articles noting shares are down materially from highs) pressure multiples; sector warning pieces and value traps narratives can keep sentiment weak until sustained proof of profitability. 3 Software Stocks with Warning Signs

Insider Transactions at SoundHound AI

In related news, COO Michael Zagorsek sold 73,406 shares of the business's stock in a transaction dated Monday, December 22nd. The shares were sold at an average price of $11.28, for a total transaction of $828,019.68. Following the transaction, the chief operating officer owned 1,787,459 shares in the company, valued at $20,162,537.52. The trade was a 3.94% decrease in their ownership of the stock. The sale was disclosed in a filing with the Securities & Exchange Commission, which is available through this hyperlink. Also, CFO Nitesh Sharan sold 60,780 shares of the stock in a transaction dated Monday, December 22nd. The stock was sold at an average price of $11.28, for a total transaction of $685,598.40. Following the completion of the transaction, the chief financial officer directly owned 1,705,148 shares of the company's stock, valued at approximately $19,234,069.44. The trade was a 3.44% decrease in their ownership of the stock. Additional details regarding this sale are available in the official SEC disclosure. In the last 90 days, insiders sold 460,922 shares of company stock worth $5,199,073. 9.17% of the stock is owned by corporate insiders.

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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