SoundHound AI (NASDAQ:SOUN) Shares Down 3.1% - Here's What Happened

Key Points

• SoundHound AI shares fell 3.1% to $3.49 in Friday mid-day trading, with trading volume 28% below its average.
• The company beat quarterly estimates, reporting revenue of $62.43 million—up 48.5% year over year—and a smaller-than-expected per-share loss. However, it still posted a $46.37 million net loss, and its 2026 revenue forecast is $250 million to $260 million.
• Analysts have cut several price targets, though MarketBeat’s consensus rating remains “Hold” with an average target of $9.50. SoundHound’s 2027 revenue and profitability goals depend on delivering growth and planned cost savings.

SoundHound AI, Inc. (NASDAQ:SOUN - Get Free Report)'s share price fell 3.1% during mid-day trading on Friday. The stock traded as low as $3.40 and last traded at $3.49. 18,845,644 shares changed hands during trading, a decline of 28% from the average session volume of 26,160,025 shares. The stock had previously closed at $3.60.

Recent SoundHound AI Headlines

Here are a few of the latest headlines about SOUN:

• Positive Sentiment: Management’s 2027 revenue outlook is $350 million to $400 million, and planned cost savings are intended to support a path to profitability that year. Wall Street analysts see scope for losses to narrow, though those targets depend on execution. Analysts’ outlook for SoundHound AI
• Neutral Sentiment: Recent coverage also points to new partnerships and recognition in customer-experience AI, which could help SoundHound win business. Their impact on revenue and profitability remains to be demonstrated. SoundHound AI valuation and CXM recognition
• Negative Sentiment: Investors may be concerned by third-quarter net losses of $46.37 million and 2026 revenue guidance of $250 million to $260 million. The updated outlook leaves the company needing to deliver on growth, cost savings, and integration plans to meet its 2027 targets. SoundHound AI results and outlook

Wall Street Analysts Forecast Growth

A number of research firms have recently commented on SOUN. Cantor Fitzgerald cut their price objective on SoundHound AI from $15.00 to $10.00 and set an "overweight" rating for the company in a research report on Friday, November 6th. Piper Sandler dropped their price target on SoundHound AI from $7.00 to $6.00 and set a "neutral" rating for the company in a research report on Tuesday, September 22nd. DA Davidson reduced their target price on shares of SoundHound AI from $10.00 to $5.00 and set a "buy" rating on the stock in a research note on Friday, November 6th. Yorkville Ives began coverage on SoundHound AI in a research report on Monday, October 5th. They set an "in-line" rating and a $6.50 price objective for the company. Finally, Weiss Ratings upgraded SoundHound AI from a "sell (e+)" rating to a "sell (d-)" rating in a research note on Thursday, October 15th. One investment analyst has rated the stock with a Strong Buy rating, three have assigned a Buy rating, four have given a Hold rating and one has given a Sell rating to the stock. Based on data from MarketBeat, the company has an average rating of "Hold" and an average price target of $9.50.

SoundHound AI Trading Down 3.1%

The firm's fifty day moving average price is $5.25 and its 200-day moving average price is $6.90. The firm has a market cap of $1.55 billion, a price-to-earnings ratio of -16.62 and a beta of 2.89.

SoundHound AI (NASDAQ:SOUN - Get Free Report) last announced its quarterly earnings results on Thursday, November 5th. The company reported ($0.05) EPS for the quarter, topping the consensus estimate of ($0.12) by $0.07. SoundHound AI had a negative net margin of 33.17% and a negative return on equity of 13.35%. The firm had revenue of $62.43 million for the quarter, compared to analyst estimates of $61.71 million. During the same period last year, the business earned ($0.03) EPS. SoundHound AI's revenue for the quarter was up 48.5% compared to the same quarter last year. On average, sell-side analysts expect that SoundHound AI, Inc. will post -0.39 earnings per share for the current year.

Insider Transactions at SoundHound AI

In other SoundHound AI news, SVP Majid Emami sold 38,730 shares of the firm's stock in a transaction dated Tuesday, September 15th. The stock was sold at an average price of $6.33, for a total transaction of $245,160.90. Following the transaction, the senior vice president owned 834,253 shares of the company's stock, valued at approximately $5,280,821.49. This trade represents a 4.44% decrease in their ownership of the stock. The sale was disclosed in a document filed with the SEC, which can be accessed through this hyperlink. The sale was made to cover tax withholding obligations related to the vesting of equity awards. Also, CEO Keyvan Mohajer sold 137,290 shares of SoundHound AI stock in a transaction dated Tuesday, September 15th. The stock was sold at an average price of $6.33, for a total value of $869,045.70. Following the sale, the chief executive officer owned 3,684,947 shares in the company, valued at $23,325,714.51. This trade represents a 3.59% decrease in their position. Additional details regarding this sale are available in the official SEC disclosure. The sale was made to cover tax withholding obligations related to the vesting of equity awards. In the last ninety days, insiders sold 288,758 shares of company stock worth $1,828,598. 8.84% of the stock is owned by company insiders.

Institutional Investors Weigh In On SoundHound AI

A number of institutional investors and hedge funds have recently added to or reduced their stakes in the company. Hollencrest Capital Management boosted its holdings in shares of SoundHound AI by 197.5% in the first quarter. Hollencrest Capital Management now owns 3,615 shares of the company's stock valued at $25,000 after acquiring an additional 2,400 shares during the period. Financial Management Professionals Inc. acquired a new position in shares of SoundHound AI in the 3rd quarter valued at $30,000. Advisors Asset Management Inc. acquired a new position in shares of SoundHound AI in the 3rd quarter valued at $38,000. Fulcrum Asset Management LLP acquired a new position in shares of SoundHound AI in the 3rd quarter valued at $45,000. Finally, Krilogy Financial LLC purchased a new stake in SoundHound AI in the 3rd quarter valued at $62,000. Hedge funds and other institutional investors own 19.28% of the company's stock.

About SoundHound AI

SoundHound AI develops voice and conversational artificial intelligence technology for businesses. Its platform is designed to let people interact with products and services using natural speech, without relying solely on preset commands or menus. The company offers voice assistants and conversational tools for industries including automotive, restaurants, and consumer electronics. Its products include Houndify, a platform for building voice-enabled applications, and SoundHound Chat AI, which combines conversational voice technology with generative AI.

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