SoundHound AI (NASDAQ:SOUN) Stock Price Up 13.3% - Time to Buy?

Key Points

• SoundHound AI surged 13.3% after reporting record second-quarter revenue of $61.9 million, up 45% year over year, while significantly beating earnings expectations.
• Management raised its 2026 revenue forecast to $230 million–$260 million, citing stronger OASYS momentum, faster deal conversion, broader enterprise adoption and improving margins.
• Despite a “Moderate Buy” consensus and an average analyst target of $14.07, risks remain: the company is still unprofitable, valuation is high, some analysts reduced price targets, and insiders have recently sold shares.

Shares of SoundHound AI, Inc. (NASDAQ:SOUN - Get Free Report) rose 13.3% during mid-day trading on Friday . The stock traded as high as $8.13 and last traded at $8.02. 64,824,488 shares were traded during trading, an increase of 123% from the average session volume of 29,018,973 shares. The stock had previously closed at $7.08.

SoundHound AI News Summary

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

• Positive Sentiment: SoundHound reported record second-quarter revenue of $61.9 million, up 45% year over year and well ahead of analyst estimates. The company’s adjusted loss also beat expectations, while gross profit increased 67.6% to $27.9 million. SoundHound AI Reports Record Q2 and All-Time High Revenue
• Positive Sentiment: Management raised its 2026 revenue outlook to $230 million-$260 million, with the company citing strong OASYS momentum, faster deal conversion, broader enterprise adoption and improving margins despite continued investment. SOUN Q2 Earnings Call Focuses on OASYS and Higher Outlook
• Positive Sentiment: Glass Lewis recommended that LivePerson stockholders vote in favor of the proposed transaction with SoundHound at the August 20 special meeting, potentially improving the deal’s prospects and strengthening SoundHound’s conversational-AI capabilities. Glass Lewis Recommends Vote for SoundHound AI Transaction
• Positive Sentiment: Heavy call-option activity and SoundHound’s high short interest may have amplified the post-earnings rally through bullish positioning and short covering.
• Neutral Sentiment: DA Davidson maintained a “buy” rating but lowered its price target from $12 to $10, signaling continued long-term confidence while acknowledging valuation or execution risks.
• Negative Sentiment: Despite rapid growth, SoundHound remains unprofitable, with a substantial operating loss and continued cash burn. Analysts and valuation screens view the stock as expensive relative to sales, while Piper Sandler cut its target to $7 and kept a neutral rating.
• Negative Sentiment: Recent insider activity shows selling rather than purchases by executives, a potential confidence concern following the sharp multi-year advance.

Analysts Set New Price Targets

Several equities analysts have recently commented on SOUN shares. DA Davidson reduced their target price on SoundHound AI from $12.00 to $10.00 and set a "buy" rating for the company in a research note on Thursday. Piper Sandler cut their price target on shares of SoundHound AI from $8.00 to $7.00 and set a "neutral" rating on the stock in a report on Thursday. LADENBURG THALM/SH SH upgraded shares of SoundHound AI to a "strong-buy" rating in a research note on Wednesday, May 6th. 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 assigned a Buy rating, three have assigned a Hold rating and one has given a Sell rating to the company's stock. According to data from MarketBeat, the stock has a consensus rating of "Moderate Buy" and an average target price of $14.07.

SoundHound AI Stock Performance

The company has a market cap of $3.47 billion, a P/E ratio of -21.10 and a beta of 2.64. The business has a fifty day simple moving average of $6.81 and a 200 day simple moving average of $7.60.

SoundHound AI (NASDAQ:SOUN - Get Free Report) last issued its quarterly earnings results on Wednesday, August 5th. The company reported ($0.02) earnings per share for the quarter, beating analysts' consensus estimates of ($0.13) by $0.11. The business had revenue of $61.90 million during the quarter, compared to the consensus estimate of $42.56 million. SoundHound AI had a negative return on equity of 31.06% and a negative net margin of 67.45%.The business's quarterly revenue was up 45.0% on a year-over-year basis. During the same period in the previous year, the business earned ($0.19) EPS. Equities research analysts expect that SoundHound AI, Inc. will post -0.45 EPS for the current year.

Insider Activity

In other SoundHound AI news, SVP Majid Emami sold 28,843 shares of SoundHound AI 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 $215,168.78. Following the completion of the transaction, the senior vice president directly owned 472,983 shares in the company, valued at $3,528,453.18. The trade was a 5.75% decrease in their ownership of the stock. The sale was disclosed in a legal filing with the SEC, which is available at 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 the company's stock in a transaction that occurred on Monday, June 15th. The shares were sold at an average price of $7.46, for a total value of $943,988.40. Following the transaction, the chief executive officer directly owned 1,947,237 shares of the company's stock, valued at $14,526,388.02. This trade represents a 6.10% decrease in their ownership of the stock. 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. Insiders have sold 268,022 shares of company stock valued at $1,999,444 over the last quarter. 8.84% of the stock is owned by company insiders.

Institutional Inflows and Outflows

A number of institutional investors have recently added to or reduced their stakes in SOUN. Hollencrest Capital Management lifted its stake in SoundHound AI by 197.5% in the first quarter. Hollencrest Capital Management now owns 3,615 shares of the company's stock valued at $25,000 after buying an additional 2,400 shares during the last quarter. Northwestern Mutual Wealth Management Co. grew 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 worth $25,000 after acquiring an additional 1,060 shares during the last quarter. Dogwood Wealth Management LLC increased its holdings in shares of SoundHound AI by 152.1% in the 4th quarter. Dogwood Wealth Management LLC now owns 2,559 shares of the company's stock worth $26,000 after acquiring an additional 1,544 shares during the period. Danske Bank A S acquired a new stake in shares of SoundHound AI in the 3rd quarter worth about $26,000. Finally, SHP Wealth Management bought a new stake in SoundHound AI in the 4th quarter valued at about $27,000. 19.28% of the stock is currently owned by institutional investors.

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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