SoundHound AI (NASDAQ:SOUN) Stock Price Down 4.9% - What's Next?

Key Points

• Shares dropped 4.9% to about $7.82 on Thursday with volume above average (29.3M vs. a 26.7M session average), signaling short-term selling pressure.
• SoundHound announced the acquisition of LivePerson and expanded its AI ordering agents with Casey’s across 2,600+ stores, moves that broaden its omnichannel conversational-AI offering and are cited as potentially unlocking a ~$500M revenue opportunity.
• Wall Street sentiment is mixed but tilted positive (consensus “Moderate Buy”, average target ~$14.93); the company’s Q1 report on May 7 could spur volatility, and recent insider selling (307,973 shares last quarter) may concern some investors.

Shares of SoundHound AI, Inc. (NASDAQ:SOUN - Get Free Report) traded down 4.9% during trading on Thursday . The stock traded as low as $7.68 and last traded at $7.82. 29,279,815 shares were traded during trading, an increase of 10% from the average session volume of 26,735,227 shares. The stock had previously closed at $8.22.

SoundHound AI News Roundup

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

• Positive Sentiment: Casey’s, the U.S. convenience retailer and pizza chain, expanded and renewed its use of SoundHound’s AI ordering agents across more than 2,600 stores; the agents have handled 21M+ guest interactions, boosting evidence of enterprise traction and recurring revenue potential. Casey’s Expands Partnership with SoundHound AI
• Positive Sentiment: SoundHound announced a definitive agreement to acquire LivePerson, combining voice-led and messaging/chat capabilities to create an omnichannel conversational-AI platform — analysts and coverage note this could open a large (cited ~$500M) revenue opportunity and improve scale/data. SoundHound AI Acquisition Of LivePerson Reshapes Omnichannel AI And Valuation
• Positive Sentiment: Wedbush and other commentators view the LivePerson deal as strengthening SoundHound’s competitive position; Wedbush flagged the acquisition as strategically accretive. SoundHound AI strengthens position with LivePerson acquisition, says Wedbush
• Positive Sentiment: DA Davidson reaffirmed a “buy” on SOUN with a $14 price target, indicating analyst conviction that the company’s strategic moves support upside from current levels. DA Davidson rating note (via Benzinga)
• Neutral Sentiment: Equity analysts and trade press are comparing SoundHound to peers (e.g., Cerence) to weigh relative execution, addressable markets and valuation; coverage notes both opportunity and competition in voice AI. SoundHound vs. Cerence: Which Voice AI Stock Has Stronger Potential?
• Neutral Sentiment: SoundHound set its Q1 2026 earnings release and conference call for May 7 — this near-term report could trigger volatility as investors re-assess revenue progress and margins post-acquisition. SoundHound AI To Report 2026 First Quarter Financial Results
• Negative Sentiment: Shares had recent down days and headlines noted declines greater than the market, reflecting some profit-taking and short-term concern around deal execution, integration risk or near-term dilution/expense. SoundHound AI, Inc. (SOUN) Declines More Than Market

Wall Street Analysts Forecast Growth

Several research analysts recently issued reports on SOUN shares. Zacks Research raised shares of SoundHound AI from a "strong sell" rating to a "hold" rating in a research note on Monday, February 9th. Piper Sandler reaffirmed a "neutral" rating and issued a $9.00 target price (down from $11.00) on shares of SoundHound AI in a research report on Friday, February 27th. DA Davidson reaffirmed a "buy" rating and issued a $14.00 target price on shares of SoundHound AI in a research report on Wednesday. HC Wainwright decreased their target price on SoundHound AI from $26.00 to $20.00 and set a "buy" rating for the company in a research report on Monday, March 2nd. Finally, Weiss Ratings reaffirmed a "sell (d-)" rating on shares of SoundHound AI in a research report on Friday, January 9th. One analyst has rated the stock with a Strong Buy rating, five have assigned a Buy rating, three have assigned a Hold rating and one has assigned a Sell rating to the company. Based on data from MarketBeat, the company currently has an average rating of "Moderate Buy" and a consensus price target of $14.93.

SoundHound AI Stock Down 4.9%

The firm's 50-day moving average price is $7.43 and its 200 day moving average price is $10.92. The company has a market capitalization of $3.31 billion, a P/E ratio of -156.37 and a beta of 2.71.

SoundHound AI (NASDAQ:SOUN - Get Free Report) last posted its earnings results on Thursday, February 26th. The company reported ($0.02) earnings per share for the quarter, meeting analysts' consensus estimates of ($0.02). SoundHound AI had a negative return on equity of 3.63% and a negative net margin of 8.71%.The company had revenue of $55.06 million for the quarter, compared to analyst estimates of $53.88 million. During the same quarter last year, the company earned ($0.05) earnings per share. The company's revenue for the quarter was up 59.4% on a year-over-year basis. As a group, equities research analysts expect that SoundHound AI, Inc. will post -0.34 EPS for the current year.

Insider Buying and Selling at SoundHound AI

In other news, SVP Majid Emami sold 31,019 shares of the firm's stock in a transaction that occurred on Friday, March 20th. The shares were sold at an average price of $6.79, for a total value of $210,619.01. Following the completion of the transaction, the senior vice president directly owned 501,826 shares in the company, valued at approximately $3,407,398.54. This trade represents a 5.82% decrease in their ownership of the stock. The transaction was disclosed in a legal filing with the Securities & Exchange Commission, which can be accessed through the SEC website. Also, CFO Nitesh Sharan sold 44,027 shares of the firm's stock in a transaction that occurred on Friday, March 20th. The shares were sold at an average price of $6.79, for a total transaction of $298,943.33. Following the completion of the transaction, the chief financial officer owned 1,661,121 shares of the company's stock, valued at $11,279,011.59. This trade represents a 2.58% decrease in their ownership of the stock. The SEC filing for this sale provides additional information. Insiders sold 307,973 shares of company stock valued at $2,091,110 in the last quarter. Insiders own 9.17% of the company's stock.

Hedge Funds Weigh In On SoundHound AI

A number of large investors have recently modified their holdings of the company. Danske Bank A S bought a new position in shares of SoundHound AI in the third quarter worth $26,000. Financial Consulate Inc. bought a new position in shares of SoundHound AI in the third quarter worth $32,000. Sound Income Strategies LLC increased its holdings in shares of SoundHound AI by 37.3% in the third quarter. Sound Income Strategies LLC now owns 2,116 shares of the company's stock worth $34,000 after purchasing an additional 575 shares during the period. Northwestern Mutual Wealth Management Co. increased its holdings in shares of 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 purchasing an additional 1,060 shares during the period. Finally, Dogwood Wealth Management LLC increased its holdings in shares of 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 purchasing an additional 1,544 shares during the period. 19.28% of the stock is currently 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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