SoundHound AI (NASDAQ:SOUN) Stock Price Down 6.9% - What's Next?

Key Points

• SoundHound AI shares fell 6.9% to about $6.88 on heavy volume as investors reacted to the announced CFO departure, with co‑founder James Hom named interim CFO amid near‑term selling pressure.
• Commercial momentum continues—SoundHound’s Employee Assist voice AI was selected by Peet’s Coffee and the company struck a partnership to integrate into Experis’ AI services, expanding recurring revenue and enterprise channels.
• Revenue rose 59.4% year‑over‑year but the business remains unprofitable (negative EPS/net margin); analysts still rate the stock a consensus Moderate Buy with an average price target around $14.93, signaling notable upside potential from current levels.

SoundHound AI, Inc. (NASDAQ:SOUN - Get Free Report)'s stock price fell 6.9% on Thursday . The company traded as low as $6.65 and last traded at $6.88. 35,998,799 shares changed hands during trading, an increase of 31% from the average session volume of 27,520,805 shares. The stock had previously closed at $7.39.

More SoundHound AI News

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

• Positive Sentiment: Analyst bullish — At least one analyst said SOUN could double, a public bullish take that can attract buyers and supports upside expectations. Analyst says SoundHound stock can double as CFO announces departure
• Positive Sentiment: Peet’s Coffee commercial win — SoundHound’s Employee Assist voice AI was selected to support in-store employees across Peet’s U.S. footprint, a meaningful customer deployment that should help recurring revenue and references. Peet's Coffee Partners with SoundHound AI
• Positive Sentiment: Enterprise partnership — SoundHound struck a deal to integrate its platforms into Experis’ new AI services suite, expanding go‑to‑market channels for enterprise adoption. Experis and SoundHound AI partner
• Neutral Sentiment: Interim finance leadership named — Co‑founder and former CFO James Hom will serve as interim CFO, which reduces near‑term uncertainty while the company searches for a permanent replacement. SoundHound AI Announces CFO Transition
• Negative Sentiment: CFO departure sparks selling — CFO Nitesh Sharan is leaving to join Quantinuum, and the announced exit has triggered investor selling and headline risk around financial leadership continuity. SoundHound AI Announces CFO Transition
• Negative Sentiment: Competitive concerns — Coverage noted NVIDIA’s push into voice AI, raising investor worries about intensifying competition in the voice/conversational AI market and pressuring SOUN shares. SoundHound AI Sinks 6%: What NVIDIA's Voice AI Bet Says About The Broader Market
• Negative Sentiment: Near‑term selling pressure — Market coverage (Benzinga/others) highlights active selling related to the CFO transition, contributing to today’s downside despite positive commercial news. Why Is SoundHound AI Stock Tumbling Today?

Analyst Upgrades and Downgrades

SOUN has been the subject of a number of recent analyst reports. Cantor Fitzgerald upgraded SoundHound AI from a "neutral" rating to an "overweight" rating and raised their price objective for the company from $13.00 to $15.00 in a research note on Friday, December 12th. Piper Sandler reissued 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. LADENBURG THALM/SH SH upgraded SoundHound AI to a "strong-buy" rating in a report on Thursday, December 18th. Zacks Research upgraded shares of SoundHound AI from a "strong sell" rating to a "hold" rating in a research report on Monday, February 9th. Finally, Weiss Ratings reaffirmed a "sell (d-)" rating on shares of SoundHound AI in a report on Friday, January 9th. One investment 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 issued a Sell rating to the company. According to MarketBeat.com, the company has a consensus rating of "Moderate Buy" and an average price target of $14.93.

SoundHound AI Stock Performance

The company has a 50-day moving average of $8.86 and a 200-day moving average of $12.40. The firm has a market capitalization of $2.89 billion, a price-to-earnings ratio of -137.57 and a beta of 2.65.

SoundHound AI (NASDAQ:SOUN - Get Free Report) last announced its quarterly earnings data on Thursday, February 26th. The company reported ($0.02) EPS for the quarter, hitting analysts' consensus estimates of ($0.02). The business had revenue of $55.06 million for the quarter, compared to analyst estimates of $53.88 million. SoundHound AI had a negative net margin of 8.71% and a negative return on equity of 3.63%. The firm's revenue for the quarter was up 59.4% on a year-over-year basis. During the same quarter in the previous year, the firm posted ($0.05) earnings per share. As a group, analysts anticipate that SoundHound AI, Inc. will post -0.38 EPS for the current fiscal year.

Insider Buying and Selling

In related news, insider James Ming Hom sold 42,600 shares of the business's stock in a transaction on Monday, December 22nd. The stock was sold at an average price of $11.28, for a total transaction of $480,528.00. Following the sale, the insider owned 803,383 shares in the company, valued at $9,062,160.24. The trade was a 5.04% decrease in their position. The sale was disclosed in a legal filing with the SEC, which is available at this hyperlink. Also, SVP Majid Emami sold 42,600 shares of the stock in a transaction dated Monday, December 22nd. The shares were sold at an average price of $11.28, for a total value of $480,528.00. Following the completion of the sale, the senior vice president directly owned 565,586 shares of the company's stock, valued at approximately $6,379,810.08. The trade was a 7.00% decrease in their position. The disclosure for this sale is available in the SEC filing. Insiders have sold 460,922 shares of company stock valued at $5,199,073 in the last ninety days. Insiders own 9.17% of the company's stock.

Institutional Investors Weigh In On SoundHound AI

Hedge funds and other institutional investors have recently modified their holdings of the company. Northwestern Mutual Wealth Management Co. lifted its position in shares of SoundHound AI by 83.1% during the second quarter. Northwestern Mutual Wealth Management Co. now owns 2,336 shares of the company's stock valued at $25,000 after purchasing an additional 1,060 shares in the last quarter. Dogwood Wealth Management LLC raised its holdings in SoundHound AI by 152.1% during the 4th quarter. Dogwood Wealth Management LLC now owns 2,559 shares of the company's stock valued at $26,000 after acquiring an additional 1,544 shares during the period. Danske Bank A S purchased a new position in SoundHound AI during the third quarter valued at approximately $26,000. Advisors Asset Management Inc. increased its position in shares of SoundHound AI by 68.4% in the second quarter. Advisors Asset Management Inc. now owns 2,519 shares of the company's stock worth $27,000 after purchasing an additional 1,023 shares during the last quarter. Finally, SHP Wealth Management purchased a new position in shares of SoundHound AI during the 4th quarter valued at about $27,000. 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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