SoundHound AI (NASDAQ:SOUN) Trading Down 1.2% - Time to Sell?

Key Points

• SoundHound AI posted strong Q2 growth: Revenue rose 45% year over year to $61.9 million, beating expectations, while gross profit increased 67.6%. Management also issued fiscal 2026 revenue guidance of $230 million to $260 million.
• Profitability remains a major concern: The company reported a $42.8 million net loss, a $43.3 million operating loss, negative EPS of $0.10 and $33.7 million in operating cash usage.
• Investor sentiment is mixed: Shares fell 1.2% to $6.43, below both their 50-day and 200-day moving averages. Although the analyst consensus is “Moderate Buy” with a $14.93 price target, repeated insider selling and the proposed LivePerson acquisition add near-term risks.

SoundHound AI, Inc. (NASDAQ:SOUN - Get Free Report) shares traded down 1.2% during mid-day trading on Wednesday . The company traded as low as $6.37 and last traded at $6.43. Approximately 27,222,258 shares changed hands during trading, a decline of 4% from the average session volume of 28,267,834 shares. The stock had previously closed at $6.51.

Trending Headlines about SoundHound AI

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

• Positive Sentiment: SoundHound reported Q2 2026 revenue of $61.9 million, up 45% year over year and well above the $53.4 million consensus estimate. Gross profit increased 67.6% to $27.9 million, indicating stronger growth and improving margins. SoundHound AI Reports Record Q2 Revenue
• Positive Sentiment: The company issued fiscal 2026 revenue guidance of $230 million to $260 million, above the $232.5 million analyst consensus at the midpoint. Management cited adoption of its OASYS platform and expanding enterprise AI demand, supporting the bullish reaction. SoundHound AI Q2 2026 Earnings
• Positive Sentiment: MUSC Health expanded SoundHound’s Emily voice agent across additional retail and specialty pharmacy lines, providing another example of deployment within an Epic-based healthcare environment. SoundHound AI MUSC Health Expansion
• Neutral Sentiment: LivePerson is encouraging shareholders to approve its proposed acquisition by SoundHound. An investor town hall is expected to address the deal’s financial, operational and contingency plans, making shareholder approval and integration execution important near-term factors. SoundHound AI LivePerson Deal
• Negative Sentiment: Despite the revenue beat, SoundHound remained unprofitable: operating loss widened to $43.3 million, net loss was $42.8 million, and diluted EPS of negative $0.10 missed the estimate of negative $0.0569. Operating cash usage totaled $33.7 million.
• Negative Sentiment: Insiders reported 12 open-market sales and no purchases during the past six months, including sizable sales by the CEO and other senior executives. This may weigh on investor confidence, particularly while the company continues to post substantial losses. SoundHound AI Insider Trading Activity

Analyst Upgrades and Downgrades

Several research analysts recently weighed in on the stock. Weiss Ratings restated a "sell (e+)" rating on shares of SoundHound AI in a report on Monday, June 15th. LADENBURG THALM/SH SH upgraded shares of SoundHound AI to a "strong-buy" rating in a research note on Wednesday, May 6th. Finally, DA Davidson reissued a "buy" rating and set a $14.00 target price on shares of SoundHound AI in a research report on Wednesday, April 22nd. One analyst has rated the stock with a Strong Buy rating, five have issued a Buy rating, three have assigned a Hold rating and one has assigned a Sell rating to the company's stock. According to MarketBeat.com, the company has a consensus rating of "Moderate Buy" and an average price target of $14.93.

SoundHound AI Trading Down 1.2%

The stock's 50-day moving average price is $6.87 and its two-hundred day moving average price is $7.66. The stock has a market capitalization of $2.78 billion, a P/E ratio of -13.68 and a beta of 2.64.

SoundHound AI (NASDAQ:SOUN - Get Free Report) last announced its quarterly earnings data on Thursday, May 7th. The company reported ($0.06) earnings per share for the quarter, missing the consensus estimate of ($0.05) by ($0.01). The firm had revenue of $44.20 million for the quarter, compared to the consensus estimate of $42.56 million. SoundHound AI had a negative net margin of 91.84% and a negative return on equity of 40.15%. SoundHound AI's revenue for the quarter was up 51.7% on a year-over-year basis. During the same period last year, the company posted ($0.06) earnings per share. On average, equities research analysts predict that SoundHound AI, Inc. will post -0.45 earnings per share for the current year.

Insider Buying and Selling

In related news, insider James Ming Hom sold 28,843 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 transaction of $215,168.78. Following the sale, the insider directly 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 filing 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, SVP Majid Emami sold 28,843 shares of SoundHound AI stock in a transaction that occurred on Monday, June 15th. The shares were sold at an average price of $7.46, for a total transaction of $215,168.78. Following the completion of the transaction, the senior vice president owned 472,983 shares of the company's stock, valued at $3,528,453.18. This represents a 5.75% 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. Over the last quarter, insiders have sold 268,022 shares of company stock valued at $1,999,444. Corporate insiders own 8.84% of the company's stock.

Institutional Investors Weigh In On SoundHound AI

Several hedge funds and other institutional investors have recently modified their holdings of the stock. Vanguard Group Inc. increased its holdings in SoundHound AI by 4.4% during the 4th quarter. Vanguard Group Inc. now owns 45,367,437 shares of the company's stock worth $452,313,000 after acquiring an additional 1,909,868 shares during the period. Rakuten Securities Inc. lifted its stake in SoundHound AI by 877.9% in the 4th quarter. Rakuten Securities Inc. now owns 333,605 shares of the company's stock worth $3,326,000 after purchasing an additional 299,492 shares in the last quarter. UBS Group AG boosted its holdings in SoundHound AI by 77.6% in the 4th 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 period. Mitsubishi UFJ Asset Management Co. Ltd. grew its position in shares of SoundHound AI by 140.5% during the 4th quarter. Mitsubishi UFJ Asset Management Co. Ltd. now owns 266,576 shares of the company's stock valued at $2,826,000 after purchasing an additional 155,743 shares in the last quarter. Finally, Geode Capital Management LLC grew its position in shares of SoundHound AI by 3.1% during the 4th quarter. Geode Capital Management LLC now owns 9,180,321 shares of the company's stock valued at $91,543,000 after purchasing an additional 273,097 shares in 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.

This instant news alert was generated by narrative science technology and financial data from MarketBeat in order to provide readers with the fastest reporting and unbiased coverage. Please send any questions or comments about this story to contact@marketbeat.com.

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