SoundHound AI (NASDAQ:SOUN) Stock Price Down 8.7% - What's Next?

Key Points

• SoundHound AI shares fell 8.7% to $5.70 on unusually heavy volume, trading below both their 50-day and 200-day moving averages.
• The company reported strong revenue growth of 51.7% year over year and expanding customer adoption, including MUSC Health’s AI agent handling more than 2.2 million patient calls. However, it missed the latest EPS estimate and continues to post substantial losses.
• Analyst sentiment remains a “Moderate Buy,” with a $14.93 consensus price target, but risks include the pending LivePerson transaction, a shareholder fiduciary-duty investigation, and recent insider stock sales made to cover tax obligations.

SoundHound AI, Inc. (NASDAQ:SOUN - Get Free Report) fell 8.7% on Wednesday . The company traded as low as $5.65 and last traded at $5.70. 46,231,335 shares changed hands during trading, an increase of 63% from the average daily volume of 28,358,516 shares. The stock had previously closed at $6.24.

More SoundHound AI News

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

• Positive Sentiment: MUSC Health expanded its use of SoundHound’s AI agent platform to retail and specialty pharmacies. Its “Emily” AI agent has now supported more than 2.2 million patient calls across the health system, offering evidence of customer adoption, platform scalability and potential for additional healthcare deployments. MUSC Health expands use of SoundHound's AI agent platform
• Positive Sentiment: An investment analysis maintained a bullish view, citing SoundHound’s position in the expanding voice-AI market, data-sovereignty capabilities, conversational AI technology, the planned LivePerson acquisition and potential transaction-based revenue. The article assigned a $7.93 one-year price target, though this is an analyst opinion rather than company guidance. SoundHound AI voice AI market analysis
• Positive Sentiment: LivePerson urged shareholders to approve its proposed transaction with SoundHound, highlighting the strategic opportunity to combine their conversational-AI technologies. Completion remains subject to shareholder approval and other closing conditions. LivePerson urges shareholders to approve SoundHound transaction
• Neutral Sentiment: Analysts have assigned SOUN a consensus recommendation of “Moderate Buy,” indicating generally favorable expectations but not a strong unanimous bullish view. SoundHound analyst consensus
• Negative Sentiment: A law firm is soliciting SoundHound shareholders regarding possible fiduciary-duty breaches by company insiders. The notice contains allegations rather than established findings, but it can add reputational and legal uncertainty and weigh on sentiment. SoundHound shareholder investigation notice

Wall Street Analysts Forecast Growth

A number of analysts have commented on the stock. Weiss Ratings reaffirmed a "sell (e+)" rating on shares of SoundHound AI in a research report on Monday, June 15th. DA Davidson reissued a "buy" rating and issued a $14.00 price objective on shares of SoundHound AI in a research report on Wednesday, April 22nd. Finally, LADENBURG THALM/SH SH raised SoundHound AI to a "strong-buy" rating in a research note on Wednesday, May 6th. 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 given a Sell rating to the company. According to MarketBeat.com, SoundHound AI presently has a consensus rating of "Moderate Buy" and an average price target of $14.93.

SoundHound AI Trading Down 8.7%

The firm's 50-day moving average price is $7.09 and its 200 day moving average price is $7.85. The company has a market cap of $2.47 billion, a price-to-earnings ratio of -12.13 and a beta of 2.62.

SoundHound AI (NASDAQ:SOUN - Get Free Report) last issued its earnings results on Thursday, May 7th. The company reported ($0.06) earnings per share (EPS) for the quarter, missing the consensus estimate of ($0.05) by ($0.01). The company had revenue of $44.20 million for the quarter, compared to the consensus estimate of $42.56 million. SoundHound AI had a negative return on equity of 40.15% and a negative net margin of 91.84%.The firm's revenue was up 51.7% compared to the same quarter last year. During the same period in the prior year, the company earned ($0.06) earnings per share. Analysts forecast that SoundHound AI, Inc. will post -0.45 earnings per share for the current fiscal year.

Insider Activity at SoundHound AI

In related news, SVP Majid Emami sold 28,843 shares of the company's stock in a transaction that occurred on Monday, June 15th. The stock was sold at an average price of $7.46, for a total transaction of $215,168.78. Following the transaction, the senior vice president directly owned 472,983 shares of the company's stock, valued at approximately $3,528,453.18. This represents a 5.75% decrease in their position. The transaction was disclosed in a filing with the Securities & Exchange Commission, which can be accessed through the SEC website. The sale was made to cover tax withholding obligations related to the vesting of equity awards. Also, CTO Timothy Stonehocker sold 18,802 shares of the stock in a transaction that occurred on Monday, June 15th. The stock was sold at an average price of $7.46, for a total value of $140,262.92. Following the completion of the transaction, the chief technology officer owned 502,290 shares in the company, valued at approximately $3,747,083.40. The trade was a 3.61% decrease in their position. Additional details regarding this sale are available in the official SEC disclosure. The sale was made to cover tax withholding obligations related to the vesting of equity awards. Over the last ninety days, insiders have sold 268,022 shares of company stock worth $1,999,444. 8.84% of the stock is currently owned by insiders.

Institutional Investors Weigh In On SoundHound AI

Several hedge funds and other institutional investors have recently modified their holdings of SOUN. Vanguard Group Inc. lifted its holdings in shares of SoundHound AI by 4.4% in the 4th quarter. Vanguard Group Inc. now owns 45,367,437 shares of the company's stock worth $452,313,000 after purchasing an additional 1,909,868 shares in the last quarter. Geode Capital Management LLC raised its holdings in SoundHound AI by 3.1% during the fourth quarter. Geode Capital Management LLC now owns 9,180,321 shares of the company's stock worth $91,543,000 after buying an additional 273,097 shares during the last quarter. Morgan Stanley raised its holdings in SoundHound AI by 48.1% during the fourth quarter. Morgan Stanley now owns 8,987,522 shares of the company's stock worth $89,606,000 after buying an additional 2,917,280 shares during the last quarter. State Street Corp lifted its stake in shares of SoundHound AI by 0.9% in the fourth quarter. State Street Corp now owns 8,691,235 shares of the company's stock valued at $86,652,000 after buying an additional 80,908 shares in the last quarter. Finally, UBS Group AG lifted its stake in shares of SoundHound AI by 77.6% in the fourth quarter. UBS Group AG now owns 6,124,283 shares of the company's stock valued at $61,059,000 after buying an additional 2,676,707 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.

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