SoundHound AI (NASDAQ:SOUN) Trading 4.7% Higher - What's Next?

Key Points

• SoundHound agreed to acquire LivePerson to build an omnichannel conversational-AI platform and concurrently raised its FY2027 revenue guidance to $350M–$400M (vs. consensus ~ $279M), signaling accelerated top-line growth and a path toward profitability.
• The stock traded up 4.7% to $8.22 on above-average volume, and institutional support includes a DA Davidson $14 price target (MarketBeat consensus target ≈ $14.93), implying significant upside from current levels.
• Despite positive moves, insiders (including the CEO and CFO) sold shares recently and analysts warn of integration and margin execution risks, so investors should expect continued volatility as the deal is digested.

SoundHound AI, Inc. (NASDAQ:SOUN - Get Free Report)'s stock price traded up 4.7% on Wednesday . The stock traded as high as $8.43 and last traded at $8.22. 34,777,763 shares traded hands during trading, an increase of 30% from the average session volume of 26,662,477 shares. The stock had previously closed at $7.85.

Key SoundHound AI News

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

• Positive Sentiment: SoundHound agreed to acquire LivePerson to combine voice agentic AI with LivePerson’s digital messaging and enterprise customer footprint; management says the combined company addresses a roughly $500M revenue opportunity and will create a large omnichannel conversational AI platform — a strategic scale and revenue-inflection move. Article Title
• Positive Sentiment: SoundHound updated FY2027 revenue guidance to $350M–$400M vs. consensus ~$279M, signaling material top-line acceleration and an accelerated path toward profitability (guidance was disclosed alongside the LivePerson deal). Article Title
• Positive Sentiment: DA Davidson reaffirmed a "buy" rating and set a $14 price target (about a ~70% upside from the recent price), providing institutional validation that may boost investor confidence and buying interest. Article Title
• Neutral Sentiment: Analysts and trade press are parsing the strategic rationale and execution risks of the LivePerson acquisition — pieces highlight potential upside from unified voice + messaging data and scale but also integration and margin execution challenges. Article Title
• Negative Sentiment: The stock experienced a notable session decline the prior trading day (reported close at $7.85, down ~5.6%), reflecting short-term volatility around the deal announcement and mixed market reaction; investors should expect swings as markets digest deal details and integration risk. Article Title

Wall Street Analysts Forecast Growth

Several analysts have weighed in on the stock. HC Wainwright dropped their target price on shares of SoundHound AI from $26.00 to $20.00 and set a "buy" rating on the stock in a research report on Monday, March 2nd. Zacks Research raised shares of SoundHound AI from a "strong sell" rating to a "hold" rating in a research report on Monday, February 9th. DA Davidson reissued a "buy" rating and set a $14.00 target price on shares of SoundHound AI in a research report on Wednesday. Piper Sandler reissued a "neutral" rating and set a $9.00 target price (down from $11.00) on shares of SoundHound AI in a research report on Friday, February 27th. Finally, Weiss Ratings reissued 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 given a Hold rating and one has assigned a Sell rating to the stock. According to MarketBeat.com, the company presently has a consensus rating of "Moderate Buy" and a consensus price target of $14.93.

SoundHound AI Trading Up 4.7%

The firm's fifty day moving average price is $7.43 and its 200 day moving average price is $10.94. The firm has a market capitalization of $3.48 billion, a PE ratio of -164.37 and a beta of 2.71.

SoundHound AI (NASDAQ:SOUN - Get Free Report) last released its quarterly earnings data on Thursday, February 26th. The company reported ($0.02) EPS for the quarter, meeting the consensus estimate of ($0.02). SoundHound AI had a negative net margin of 8.71% and a negative return on equity of 3.63%. The business had revenue of $55.06 million for the quarter, compared to the consensus estimate of $53.88 million. During the same period in the prior year, the firm earned ($0.05) EPS. The business's revenue for the quarter was up 59.4% on a year-over-year basis. On average, analysts predict that SoundHound AI, Inc. will post -0.34 earnings per share for the current year.

Insider Activity

In related news, CFO Nitesh Sharan sold 44,027 shares of the stock in a transaction 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 sale, the chief financial officer directly owned 1,661,121 shares of the company's stock, valued at approximately $11,279,011.59. This represents a 2.58% decrease in their ownership of the stock. The sale was disclosed in a filing with the SEC, which is available at this hyperlink. Also, CEO Keyvan Mohajer sold 124,510 shares of the stock in a transaction on Friday, March 20th. The stock was sold at an average price of $6.79, for a total transaction of $845,422.90. Following the sale, the chief executive officer directly owned 2,073,777 shares in the company, valued at $14,080,945.83. This trade represents a 5.66% decrease in their ownership of the stock. The SEC filing for this sale provides additional information. Insiders sold a total of 307,973 shares of company stock valued at $2,091,110 in the last three months. Corporate insiders own 9.17% of the company's stock.

Institutional Trading of SoundHound AI

A number of hedge funds have recently added to or reduced their stakes in the company. Northwestern Mutual Wealth Management Co. raised its position in 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 period. Dogwood Wealth Management LLC raised its position in SoundHound AI by 152.1% during the fourth 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 position in SoundHound AI during the third quarter worth $26,000. SHP Wealth Management acquired a new position in SoundHound AI during the fourth quarter worth $27,000. Finally, Financial Consulate Inc. acquired a new position in SoundHound AI during the third quarter worth $32,000. 19.28% of the stock is owned by hedge funds and other 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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