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

Key Points

• Shares gapped down (opened at $8.69 vs. prior close $9.63) on heavy volume after Q1 results that beat revenue but missed EPS, while management issued a wide FY2026 revenue range and warned of margin pressure from acquisitions, triggering sharp near‑term selling.
• Despite the pullback, SoundHound highlighted longer‑term catalysts — record Q1 revenue (up ~52% YoY), the new OASYS agent platform and the planned LivePerson deal with a FY2027 revenue target of $350–$400M — and analysts remain mixed but generally positive (consensus "Moderate Buy").

SoundHound AI, Inc. (NASDAQ:SOUN - Get Free Report)'s share price gapped down before the market opened on Friday . The stock had previously closed at $9.63, but opened at $8.69. SoundHound AI shares last traded at $8.4960, with a volume of 13,190,773 shares traded.

SoundHound AI News Summary

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

• Positive Sentiment: Record revenue and strong top-line growth: Q1 revenue was $44.2M, up ~52% year-over-year and above estimates, showing continued demand growth in voice/agentic AI. SoundHound AI Reports Record Q1 Revenue
• Positive Sentiment: New product catalyst — OASYS platform launch: management unveiled OASYS, a self-learning agent platform that consolidates recent acquisitions and could expand enterprise monetization and gross dollar retention over time. SoundHound AI Launches OASYS
• Positive Sentiment: Acquisition-driven longer-term revenue upside — LivePerson deal and 2027 outlook: the planned LivePerson acquisition and company commentary outline FY2027 revenue of at least $350M–$400M, implying meaningful scale if execution holds. SoundHound outlines 2027 revenue after LivePerson
• Positive Sentiment: Analyst support: at least one shop upgraded the stock to a strong-buy, which may support interest from growth-focused investors. Analyst Upgrade Note
• Neutral Sentiment: Bullish analyst write-ups and buy‑the‑dip commentary circulated after the slide, arguing product cadence and M&A could justify higher multiples — useful for longer-term investors but contingent on execution. SA: Buying Opportunity
• Neutral Sentiment: Wall Street interest noted in media pieces; analyst commentary can amplify moves but does not change fundamentals immediately. Wall Street Bulls Look Optimistic
• Negative Sentiment: EPS miss and higher costs: Q1 EPS missed/was weaker than some estimates due to acquisition-related charges and vendor true-ups, raising near-term profitability concerns. Q1 Earnings Miss on Higher Costs
• Negative Sentiment: Guidance uncertainty and margin pressure: management issued a wide FY2026 revenue range ($225M–$260M) and noted margin impacts from acquisitions, which increased investor risk aversion and prompted the sell-off. Guidance and Market Reaction
• Negative Sentiment: Heavy near-term selling: the market reacted sharply (double-digit intraday decline reported) as investors weighed slower margin recovery against growth—short-term technical and sentiment pressures are material. Stock Down 13% Article

Analyst Ratings Changes

SOUN has been the topic of a number of recent analyst reports. HC Wainwright decreased their target price on SoundHound AI from $26.00 to $20.00 and set a "buy" rating on the stock in a research report on Monday, March 2nd. Weiss Ratings reissued a "sell (d-)" rating on shares of SoundHound AI in a research note on Friday, January 9th. DA Davidson reissued a "buy" rating and issued a $14.00 price objective on shares of SoundHound AI in a research note on Wednesday, April 22nd. Piper Sandler reissued a "neutral" rating and issued a $9.00 price objective (down from $11.00) on shares of SoundHound AI in a research note on Friday, February 27th. Finally, LADENBURG THALM/SH SH raised shares of SoundHound AI to a "strong-buy" rating in a research note on Wednesday. One analyst has rated the stock with a Strong Buy rating, five have issued a Buy rating, three have issued a Hold rating and one has given a Sell rating to the company's stock. According to data from MarketBeat, the company has a consensus rating of "Moderate Buy" and an average price target of $14.93.

SoundHound AI Price Performance

The company has a fifty day moving average of $7.57 and a 200 day moving average of $10.18. The firm has a market capitalization of $3.61 billion, a P/E ratio of -170.67 and a beta of 2.58.

SoundHound AI (NASDAQ:SOUN - Get Free Report) last announced its earnings results on Thursday, February 26th. The company reported ($0.02) EPS for the quarter, meeting the consensus estimate of ($0.02). SoundHound AI had a negative return on equity of 3.63% and a negative net margin of 8.71%.The business had revenue of $55.06 million for the quarter, compared to analysts' expectations of $53.88 million. During the same period in the prior year, the business posted ($0.05) earnings per share. The firm's revenue was up 59.4% on a year-over-year basis. On average, sell-side analysts forecast that SoundHound AI, Inc. will post -0.36 EPS for the current year.

Insider Buying and Selling at SoundHound AI

In related news, CEO Keyvan Mohajer sold 124,510 shares of SoundHound AI stock in a transaction on Friday, March 20th. The shares were sold at an average price of $6.79, for a total transaction of $845,422.90. Following the completion of the transaction, the chief executive officer owned 2,073,777 shares of the company's stock, valued at $14,080,945.83. This trade represents a 5.66% decrease in their ownership of the stock. The sale was disclosed in a filing with the Securities & Exchange Commission, which is available at the SEC website. Also, insider James Ming Hom sold 31,019 shares of SoundHound AI stock in a transaction on Friday, March 20th. The stock was sold at an average price of $6.79, for a total transaction of $210,619.01. Following the transaction, the insider directly owned 772,364 shares of the company's stock, valued at $5,244,351.56. This represents a 3.86% decrease in their position. Additional details regarding this sale are available in the official SEC disclosure. Insiders have sold 307,973 shares of company stock valued at $2,091,110 over the last three months. 8.84% of the stock is currently owned by corporate insiders.

Hedge Funds Weigh In On SoundHound AI

Hedge funds have recently bought and sold shares of the company. Danske Bank A S bought a new position in SoundHound AI during the third quarter worth $26,000. Northwestern Mutual Wealth Management Co. raised its stake in SoundHound AI by 83.1% during 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 during the last quarter. Dogwood Wealth Management LLC raised its stake in SoundHound AI by 152.1% during 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 during the last quarter. SHP Wealth Management bought a new position in SoundHound AI during the fourth quarter worth $27,000. Finally, Bogart Wealth LLC increased its stake in SoundHound AI by 242.4% in the third quarter. Bogart Wealth LLC now owns 2,825 shares of the company's stock valued at $45,000 after purchasing an additional 2,000 shares in the last quarter. Institutional investors own 19.28% of the company's stock.

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.

This instant news alert was generated by narrative science technology and financial data from MarketBeat in order to provide readers with the fastest reporting and unbiased coverage. Please send any questions or comments about this story to contact@marketbeat.com.