SoundHound AI (NASDAQ:SOUN) Shares Down 1.8% - Here's What Happened

Key Points

• Shares fell about 1.8% to $6.43 on Friday with 17.27M shares traded (down ~33% vs. average), and the stock has shown high volatility—roughly a 43% drop over three months and trading below its 50- and 200-day moving averages.
• SoundHound announced a partnership with Associated Carrier Group to deploy agentic AI to Tier 2/3 telecoms, targeting reduced call volumes, faster issue resolution and recurring software revenue that could accelerate commercial traction.
• Analysts are cautiously optimistic (consensus Moderate Buy, average target ~$14.93), but the company remains unprofitable despite 59% YoY revenue growth, faces valuation and execution risks, and has seen recent insider stock sales.

SoundHound AI, Inc. (NASDAQ:SOUN - Get Free Report) shares traded down 1.8% during trading on Friday . The company traded as low as $6.36 and last traded at $6.43. 17,266,207 shares traded hands during mid-day trading, a decline of 33% from the average session volume of 25,853,689 shares. The stock had previously closed at $6.55.

Key SoundHound AI News

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

• Positive Sentiment: Strategic partnership with regional telecoms — SoundHound announced a tie-up with Associated Carrier Group (ACG) to deliver agentic AI to Tier 2/3 mobile operators, which management says can reduce call volumes, speed issue resolution and create recurring software revenue streams. This deal directly targets telecom customer-service spend and could accelerate commercial traction. SoundHound AI and Associated Carrier Group Partner to Bring Agentic AI to Telecom Customer Service and Employee Experience
• Positive Sentiment: Investor/media coverage and bullish analyst comparisons — multiple outlets highlight SOUN as a growth AI name with strong upside (TipRanks comparison vs. PLTR shows a “Strong Buy” signal and large projected upside), increasing visibility among retail and institutional investors. SoundHound (SOUN) vs. Palantir (PLTR): Which AI Stock Could Double in 2026?
• Positive Sentiment: Positive buy-the-dip narrative — The Motley Fool and other outlets are featuring SOUN as a high-upside growth pick, which can attract retail inflows when the stock dips. What Is One of the Best Growth Stocks to Buy With $500 Today?
• Neutral Sentiment: Trending and analyst attention — Zacks and other sites note heightened user/reader interest in SOUN, which can boost short-term volume but doesn’t guarantee sustained moves. Is Trending Stock SoundHound AI, Inc. (SOUN) a Buy Now?
• Neutral Sentiment: Broader tech/AI market drivers — some coverage attributes recent intraday strength to a wider tech rally and geopolitical news rather than company-specific fundamentals, so market direction may dominate near-term moves. SoundHound AI (SOUN) Stock Climbs Amid Broader Tech Rally on Geopolitical Developments
• Negative Sentiment: Recent sharp drawdown and volatility — another article flags a ~43% drop over three months and notable monthly declines; high short-term volatility raises execution and sentiment risk for investors. SoundHound Stock Plunges 43% in 3 Months: Buy the Dip or Wait Longer?
• Negative Sentiment: Valuation and fundamentals caution — despite 59% YoY revenue growth and a recent revenue beat, SoundHound remains unprofitable, carries a high forward P/S multiple and trades below key moving averages, which can limit upside until consistent profitability or much larger scale is proven. Article reference: company filings and recent earnings release.

Analysts Set New Price Targets

A number of research analysts recently commented on the company. DA Davidson set a $14.00 target price on SoundHound AI in a research note on Thursday, January 8th. HC Wainwright cut their price target on shares of SoundHound AI from $26.00 to $20.00 and set a "buy" rating for the company in a research report on Monday, March 2nd. LADENBURG THALM/SH SH upgraded shares of SoundHound AI to a "strong-buy" rating in a research report on Thursday, December 18th. Cantor Fitzgerald upgraded shares of SoundHound AI from a "neutral" rating to an "overweight" rating and upped their price target for the company from $13.00 to $15.00 in a research report on Friday, December 12th. Finally, Zacks Research upgraded shares of SoundHound AI from a "strong sell" rating to a "hold" rating in a research report on Monday, February 9th. One analyst has rated the stock with a Strong Buy rating, five have assigned a Buy rating, three have given a Hold rating and one has assigned a Sell rating to the stock. Based on data from MarketBeat, the company currently has a consensus rating of "Moderate Buy" and an average target price of $14.93.

SoundHound AI Price Performance

The stock has a market capitalization of $2.72 billion, a P/E ratio of -128.57 and a beta of 2.71. The firm's 50 day moving average price is $7.55 and its 200 day moving average price is $11.55.

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

Insider Activity

In other news, insider James Ming Hom sold 31,019 shares of the company's stock in a transaction dated Friday, March 20th. The shares were sold at an average price of $6.79, for a total transaction of $210,619.01. Following the completion of the transaction, the insider directly owned 772,364 shares of the company's stock, valued at approximately $5,244,351.56. This represents a 3.86% decrease in their ownership of the stock. The sale was disclosed in a legal filing with the SEC, which is accessible through this hyperlink. Also, CFO Nitesh Sharan sold 44,027 shares of the company's stock in a transaction dated Friday, March 20th. The shares were sold at an average price of $6.79, for a total transaction of $298,943.33. Following the transaction, the chief financial officer directly owned 1,661,121 shares of the company's stock, valued at approximately $11,279,011.59. This trade represents a 2.58% decrease in their ownership of the stock. Additional details regarding this sale are available in the official SEC disclosure. In the last quarter, insiders sold 307,973 shares of company stock valued at $2,091,110. 9.17% of the stock is owned by corporate insiders.

Hedge Funds Weigh In On SoundHound AI

Institutional investors have recently bought and sold shares of the stock. Northwestern Mutual Wealth Management Co. raised its stake in SoundHound AI by 83.1% in the second quarter. Northwestern Mutual Wealth Management Co. now owns 2,336 shares of the company's stock worth $25,000 after buying an additional 1,060 shares in the last quarter. Dogwood Wealth Management LLC raised its stake in SoundHound AI by 152.1% in the fourth quarter. Dogwood Wealth Management LLC now owns 2,559 shares of the company's stock worth $26,000 after buying an additional 1,544 shares in the last quarter. Danske Bank A S bought a new position in SoundHound AI in the third quarter worth about $26,000. SHP Wealth Management bought a new position in SoundHound AI in the fourth quarter worth about $27,000. Finally, Investors Research Corp raised its stake in SoundHound AI by 62.4% in the third quarter. Investors Research Corp now owns 1,822 shares of the company's stock worth $29,000 after buying an additional 700 shares in the last quarter. 19.28% of the stock is owned by institutional investors.

About SoundHound AI

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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