SoundHound AI (NASDAQ:SOUN) Trading Down 3.6% - What's Next?

Key Points

• SoundHound AI shares fell 3.6% to $5.93, with trading volume slightly above average. The stock remains below its 50-day and 200-day moving averages of $6.72 and $7.26, respectively.
• Analyst sentiment is mixed: Piper Sandler and DA Davidson lowered their price targets to $7 and $10, respectively, while the overall consensus remains a “Moderate Buy” with an average target of $13.00.
• SoundHound reported a quarterly loss of $0.02 per share, beating expectations, while revenue reached $61.9 million—up 45% year over year and above estimates. Despite the growth, the company remains unprofitable, with a negative net margin of 67.45%.

Shares of SoundHound AI, Inc. (NASDAQ:SOUN - Get Free Report) were down 3.6% during trading on Wednesday . The company traded as low as $5.83 and last traded at $5.93. 29,422,973 shares traded hands during trading, an increase of 4% from the average session volume of 28,365,691 shares. The stock had previously closed at $6.15.

Analyst Upgrades and Downgrades

SOUN has been the topic of several research analyst reports. Piper Sandler dropped their price objective on shares of SoundHound AI from $8.00 to $7.00 and set a "neutral" rating on the stock in a research report on Thursday, August 6th. DA Davidson reduced their target price on shares of SoundHound AI from $12.00 to $10.00 and set a "buy" rating for the company in a report on Thursday, August 6th. Weiss Ratings reiterated a "sell (e+)" rating on shares of SoundHound AI in a research note on Friday. Finally, Wall Street Zen raised shares of SoundHound AI from a "strong sell" rating to a "sell" rating in a report on Sunday. One research analyst has rated the stock with a Strong Buy rating, three have given a Buy rating, two have issued a Hold rating and one has given a Sell rating to the stock. According to MarketBeat.com, the stock has an average rating of "Moderate Buy" and an average target price of $13.00.

SoundHound AI Stock Down 3.6%

The company has a market cap of $2.63 billion, a price-to-earnings ratio of -15.60 and a beta of 2.66. The stock has a fifty day moving average price of $6.72 and a two-hundred day moving average price of $7.26.

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 predict that SoundHound AI, Inc. will post -0.33 earnings per share for the current fiscal year.

Institutional Inflows and Outflows

Hedge funds have recently made changes to their positions in the business. Geode Capital Management LLC increased its position in shares of SoundHound AI by 3.1% in the fourth quarter. Geode Capital Management LLC now owns 9,180,321 shares of the company's stock worth $91,543,000 after purchasing an additional 273,097 shares during the period. Swiss National Bank increased its holdings in SoundHound AI by 3.7% in the 1st quarter. Swiss National Bank now owns 767,100 shares of the company's stock valued at $5,270,000 after buying an additional 27,300 shares during the period. California State Teachers Retirement System increased its holdings in SoundHound AI by 25.0% in the 1st quarter. California State Teachers Retirement System now owns 440,023 shares of the company's stock valued at $3,023,000 after buying an additional 87,998 shares during the period. AXQ Capital LP raised its position in shares of SoundHound AI by 395.6% in the 2nd quarter. AXQ Capital LP now owns 254,744 shares of the company's stock valued at $1,648,000 after buying an additional 203,345 shares in the last quarter. Finally, SG Americas Securities LLC bought a new stake in shares of SoundHound AI during the 1st quarter worth approximately $1,606,000. 19.28% of the stock is owned by institutional investors.

About SoundHound AI

SoundHound AI, Inc develops conversational artificial intelligence and voice-enabled technologies. Its platform is designed to let users interact with devices, applications and services through natural-language speech, supporting functions such as information retrieval, question answering and task completion.

The company's offerings include the Houndify conversational AI platform, which businesses can use to build branded voice assistants, as well as SoundHound Chat AI, an in-car and consumer-oriented voice assistant that combines conversational capabilities with access to information and services.

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