SoundHound AI (NASDAQ:SOUN) Shares Up 3.1% - Time to Buy?

Key Points

• SoundHound AI shares rose 3.1% on Tuesday, trading as high as $6.85 on volume above its average, though the stock remains well below its 50-day and 200-day moving averages.
• The company got a boost from positive business news, including being named a Leader in Gartner’s 2026 Magic Quadrant for Conversational AI Platforms and progress on its pending LivePerson acquisition.
• Despite revenue growth, investors are still focused on ongoing losses and cash burn, with the stock down sharply year to date and technical coverage warning it is hovering near key support levels.

SoundHound AI, Inc. (NASDAQ:SOUN - Get Free Report) was up 3.1% during trading on Tuesday . The stock traded as high as $6.85 and last traded at $6.69. 32,502,359 shares changed hands during trading, an increase of 19% from the average session volume of 27,395,379 shares. The stock had previously closed at $6.49.

Trending Headlines about SoundHound AI

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

• Positive Sentiment: SoundHound announced it was named a Leader in Gartner’s 2026 Magic Quadrant for Conversational AI Platforms, which supports the company’s credibility in a competitive AI market and could help sentiment around future customer adoption. SoundHound AI Named a Leader in the 2026 Gartner Magic Quadrant for Conversational AI Platforms
• Positive Sentiment: The company’s pending LivePerson acquisition appears to be advancing, with an amended merger agreement now in place. Investors may view this as a sign SoundHound is still expanding its AI platform through M&A. SoundHound AI (SOUN) and LivePerson Sign Amended Merger Agreement
• Neutral Sentiment: Recent commentary continues to highlight SoundHound as a low-priced AI stock with notable analyst and hedge fund interest, but it remains more of a watchlist-style theme than a direct catalyst. SoundHound AI (SOUN) and LivePerson Sign Amended Merger Agreement
• Negative Sentiment: Multiple articles note that SOUN’s sharp year-to-date decline reflects investor worries about persistent losses and cash burn, despite revenue growth. That pressure is likely weighing on the stock more than the positive AI partnership/news flow. SoundHound Plunges 35% YTD: Should You Buy, Hold or Sell the Stock?
• Negative Sentiment: Technical coverage also says SoundHound is hovering near key support after a recent drop, suggesting traders are watching for further downside if buyers do not step in. SoundHound AI (SOUN) Dips 2.18% as It Hovers Near Key Support - Wyckoff Spring

Analyst Upgrades and Downgrades

SOUN has been the topic of a number of recent analyst reports. LADENBURG THALM/SH SH raised shares of SoundHound AI to a "strong-buy" rating in a research note on Wednesday, May 6th. DA Davidson reissued a "buy" rating and issued a $14.00 price target on shares of SoundHound AI in a research note on Wednesday, April 22nd. Finally, Weiss Ratings reissued a "sell (e+)" rating on shares of SoundHound AI in a report on Monday, June 15th. One research analyst has rated the stock with a Strong Buy rating, five have given a Buy rating, three have assigned a Hold rating and one has issued a Sell rating to the stock. According to MarketBeat.com, the company currently has an average rating of "Moderate Buy" and an average price target of $14.93.

SoundHound AI Trading Up 3.1%

The stock has a market capitalization of $2.90 billion, a PE ratio of -14.23 and a beta of 2.62. The business has a fifty day moving average price of $7.60 and a 200-day moving average price of $8.18.

SoundHound AI (NASDAQ:SOUN - Get Free Report) last announced its quarterly earnings data on Thursday, May 7th. The company reported ($0.06) earnings per share for the quarter, missing analysts' consensus estimates of ($0.05) by ($0.01). The firm had revenue of $44.20 million for the quarter, compared to analysts' expectations of $42.56 million. SoundHound AI had a negative net margin of 91.84% and a negative return on equity of 40.15%. The business's quarterly revenue was up 51.7% on a year-over-year basis. During the same period in the prior year, the business posted ($0.06) earnings per share. On average, equities analysts anticipate that SoundHound AI, Inc. will post -0.45 earnings per share for the current fiscal year.

Insider Activity

In related news, SVP Majid Emami sold 28,843 shares of the stock in a transaction on Monday, June 15th. The shares were sold at an average price of $7.46, for a total transaction of $215,168.78. Following the transaction, the senior vice president owned 472,983 shares of the company's stock, valued at approximately $3,528,453.18. This trade represents a 5.75% decrease in their position. The transaction was disclosed in a document filed with the Securities & Exchange Commission, which is accessible through this link. The sale was made to cover tax withholding obligations related to the vesting of equity awards. Also, CEO Keyvan Mohajer sold 126,540 shares of SoundHound AI stock in a transaction on Monday, June 15th. The stock was sold at an average price of $7.46, for a total transaction of $943,988.40. Following the completion of the transaction, the chief executive officer owned 1,947,237 shares in the company, valued at approximately $14,526,388.02. The trade was a 6.10% decrease in their position. The SEC filing for this sale provides additional information. The sale was made to cover tax withholding obligations related to the vesting of equity awards. In the last three months, insiders sold 268,022 shares of company stock valued at $1,999,444. Insiders own 8.84% of the company's stock.

Institutional Inflows and Outflows

Several large investors have recently modified their holdings of the stock. Handelsbanken Fonder AB boosted its holdings in SoundHound AI by 17.4% during the 2nd quarter. Handelsbanken Fonder AB now owns 124,000 shares of the company's stock valued at $802,000 after acquiring an additional 18,400 shares during the period. Focus Financial Network Inc. increased its stake in SoundHound AI by 21.4% in the 2nd quarter. Focus Financial Network Inc. now owns 48,229 shares of the company's stock worth $312,000 after purchasing an additional 8,516 shares during the period. IFC & Insurance Marketing Inc. lifted its position in SoundHound AI by 17.9% in the second quarter. IFC & Insurance Marketing Inc. now owns 42,255 shares of the company's stock valued at $273,000 after purchasing an additional 6,427 shares during the last quarter. Hennion & Walsh Asset Management Inc. lifted its position in SoundHound AI by 19.2% in the second quarter. Hennion & Walsh Asset Management Inc. now owns 118,662 shares of the company's stock valued at $768,000 after purchasing an additional 19,133 shares during the last quarter. Finally, Empowered Funds LLC boosted its stake in shares of SoundHound AI by 19.6% during the first quarter. Empowered Funds LLC now owns 13,896 shares of the company's stock valued at $95,000 after purchasing an additional 2,277 shares during the period. Hedge funds and other institutional investors own 19.28% of the company's stock.

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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