SoundHound AI (NASDAQ:SOUN) Trading 10.1% Higher - Here's What Happened

Key Points

• SoundHound AI shares surged 10.1% after the company reported record second-quarter revenue of $61.9 million, up 45% year over year, while narrowing its loss versus analyst expectations.
• Management raised fiscal 2026 revenue guidance to $230 million–$260 million, citing strong OASYS demand and increasing enterprise adoption of its AI platform.
• Despite the positive outlook, investors face risks from continued operating losses and cash burn, valuation concerns, insider selling, and a neutral rating and lower price target from Piper Sandler.

SoundHound AI, Inc. (NASDAQ:SOUN - Get Free Report)'s share price shot up 10.1% during trading on Thursday . The stock traded as high as $8.19 and last traded at $7.08. Approximately 88,400,921 shares traded hands during trading, an increase of 207% from the average daily volume of 28,773,703 shares. The stock had previously closed at $6.43.

Key Headlines Impacting SoundHound AI

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

• Positive Sentiment: Record revenue and earnings beat: Second-quarter revenue reached $61.9 million, up 45% year over year and ahead of estimates near $52–$53 million. The company also reported a smaller-than-expected loss, with GAAP EPS of negative $0.10 versus expectations of approximately negative $0.13. Gross profit rose 67.6% to $27.9 million. SoundHound AI Reports Record Q2 and All Time High Revenue
• Positive Sentiment: Higher outlook supports the bull case: SoundHound raised its fiscal 2026 revenue guidance to $230 million–$260 million, broadly around or above the $232.5 million consensus estimate. Management cited strong OASYS demand and growing enterprise adoption of its AI platform. SoundHound Q2 Earnings Beat on OASYS Demand
• Positive Sentiment: Momentum and positioning amplified the move: Analysts largely praised the results and guidance, while unusually heavy call-option activity and SoundHound’s high short interest—reported at roughly 42%—may have contributed to short covering and additional buying pressure. SoundHound AI Soars as Wall Street Praises Results and Guidance
• Neutral Sentiment: LivePerson transaction remains a potential catalyst: LivePerson is seeking shareholder support for its proposed acquisition by SoundHound, with an investor town hall planned to address the deal’s financial and operational implications. SoundHound AI Pushes LivePerson Deal
• Negative Sentiment: Profitability remains a concern: SoundHound continued to post substantial losses, including a $43.3 million operating loss, $33.7 million in operating cash burn, and a negative net margin. Some commentary also points to execution and operational weaknesses beneath the headline results. Why SoundHound’s Post-Earnings Rally May Be Unsustainable
• Negative Sentiment: Valuation caution persists: Piper Sandler lowered its price target from $8 to $7 and maintained a neutral rating. Reported insider transactions also show company executives selling shares without recent purchases, which could weigh on investor sentiment.

Wall Street Analysts Forecast Growth

Several analysts have issued reports on SOUN shares. DA Davidson reaffirmed a "buy" rating and issued a $14.00 price objective on shares of SoundHound AI in a research report on Wednesday, April 22nd. Weiss Ratings restated a "sell (e+)" rating on shares of SoundHound AI in a research note on Monday, June 15th. LADENBURG THALM/SH SH raised shares of SoundHound AI to a "strong-buy" rating in a report on Wednesday, May 6th. Finally, Piper Sandler dropped their price target on shares of SoundHound AI from $8.00 to $7.00 and set a "neutral" rating on the stock in a research note on Thursday. One equities research analyst has rated the stock with a Strong Buy rating, five have assigned a Buy rating, three have issued a Hold rating and one has assigned a Sell rating to the stock. According to data from MarketBeat.com, the company presently has a consensus rating of "Moderate Buy" and an average price target of $14.64.

SoundHound AI Trading Up 9.8%

The company has a market capitalization of $3.06 billion, a price-to-earnings ratio of -15.02 and a beta of 2.64. The stock has a 50-day simple moving average of $6.84 and a 200-day simple moving average of $7.63.

SoundHound AI (NASDAQ:SOUN - Get Free Report) last released its quarterly earnings results 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). SoundHound AI had a negative return on equity of 40.15% and a negative net margin of 91.84%.The company had revenue of $44.20 million for the quarter, compared to analyst estimates of $42.56 million. During the same period in the previous year, the business posted ($0.06) EPS. The firm's quarterly revenue was up 51.7% compared to the same quarter last year. On average, research analysts forecast that SoundHound AI, Inc. will post -0.45 EPS for the current year.

Insider Buying and Selling

In other news, insider James Ming Hom sold 28,843 shares of the company's stock in a transaction dated Monday, June 15th. The shares were sold at an average price of $7.46, for a total value of $215,168.78. Following the sale, the insider owned 743,521 shares in the company, valued at approximately $5,546,666.66. This represents a 3.73% decrease in their position. The sale was disclosed in a document filed with the SEC, which can be accessed through this hyperlink. 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 SoundHound AI stock in a transaction dated 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 of the company's stock, valued at $3,747,083.40. This trade represents a 3.61% decrease in their ownership of the stock. The disclosure for this sale is available in the SEC filing. The sale was made to cover tax withholding obligations related to the vesting of equity awards. In the last three months, 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

A number of institutional investors have recently made changes to their positions in the company. Vanguard Group Inc. boosted its holdings in SoundHound AI by 4.4% in the fourth 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 during the period. Geode Capital Management LLC raised its holdings in shares of 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 purchasing an additional 273,097 shares during the period. Morgan Stanley boosted its stake in SoundHound AI by 48.1% in the fourth quarter. Morgan Stanley now owns 8,987,522 shares of the company's stock valued at $89,606,000 after acquiring an additional 2,917,280 shares during the period. State Street Corp grew its holdings in shares of SoundHound AI by 0.9% during the fourth quarter. State Street Corp now owns 8,691,235 shares of the company's stock valued at $86,652,000 after purchasing an additional 80,908 shares during the last quarter. Finally, UBS Group AG grew its holdings in shares of SoundHound AI by 77.6% during the fourth quarter. UBS Group AG now owns 6,124,283 shares of the company's stock valued at $61,059,000 after purchasing an additional 2,676,707 shares during the last quarter. 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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