SoundHound AI (NASDAQ:SOUN) Trading Down 3.5% - Here's What Happened

Key Points

• Shares fell 3.5% to $9.14 on Tuesday with about 30.8M shares traded (≈13% above average), and Q1 earnings due May 7 could trigger sharp volatility around the print.
• SoundHound launched OASYS, a self‑learning "orchestrated agentic" AI platform that could drive larger enterprise deployments and recurring revenue if broadly adopted.
• Recent results showed revenue up ~59% YoY and an EPS beat, but the company remains unprofitable with negative margins; analysts are mixed (consensus "Moderate Buy", average PT $14.93) and retail-driven momentum increases downside risk.

SoundHound AI, Inc. (NASDAQ:SOUN - Get Free Report) shares dropped 3.5% during trading on Tuesday . The stock traded as low as $8.92 and last traded at $9.14. Approximately 30,762,700 shares were traded during mid-day trading, an increase of 13% from the average daily volume of 27,326,096 shares. The stock had previously closed at $9.47.

SoundHound AI News Summary

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

• Positive Sentiment: SoundHound launched OASYS, a self‑learning "orchestrated agentic" AI platform that markets as letting businesses create agents that build and improve themselves — a product that could drive larger enterprise deployments and recurring revenue if adopted broadly. SoundHound AI Introduces OASYS (GlobeNewswire) SoundHound AI Introduces OASYS (Yahoo Finance)
• Neutral Sentiment: Fundamentals: the company reported strong revenue growth last quarter (revenue up ~59% YoY and a small EPS beat), and Q1 results are due May 7 — the print could validate growth and support the stock, but outcomes and guidance will determine direction. SoundHound to Post Q1 Earnings (Zacks)
• Negative Sentiment: Recent price action has been driven by retail momentum (a 20%+ intraday pop and a month-long rip), including social media setups — that raises downside risk if earnings or forward commentary disappoint. Skip the SoundHound Hype (247WallSt) SoundHound Stock Soars 20% (Blockonomi)
• Negative Sentiment: Analysts/technicals are mixed — some note estimate‑revision risk and caution that the surge may not be sustainable absent continued upgrades, while chart signals show high volatility and volume spikes. Traders should expect sharp moves around the upcoming earnings release. SOUN Moves 20.1% Higher (Yahoo Markets) Chart Signals (Benzinga)

Analyst Upgrades and Downgrades

Several research firms recently issued reports on SOUN. Piper Sandler restated a "neutral" rating and set a $9.00 price target (down from $11.00) on shares of SoundHound AI in a research report on Friday, February 27th. DA Davidson restated a "buy" rating and set a $14.00 price target on shares of SoundHound AI in a research report on Wednesday, April 22nd. HC Wainwright reduced their price target on 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 upgraded SoundHound AI from a "strong sell" rating to a "hold" rating in a research report on Monday, February 9th. Finally, Weiss Ratings restated a "sell (d-)" rating on shares of SoundHound AI in a research report on Friday, January 9th. One research analyst has rated the stock with a Strong Buy rating, five have issued a Buy rating, three have issued a Hold rating and one has given a Sell rating to the stock. Based on data from MarketBeat, the stock currently has a consensus rating of "Moderate Buy" and an average price target of $14.93.

SoundHound AI Stock Performance

The firm has a market capitalization of $3.86 billion, a P/E ratio of -182.76 and a beta of 2.58. The firm has a 50-day moving average of $7.49 and a 200-day moving average of $10.41.

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

Insider Activity at SoundHound AI

In related news, CEO Keyvan Mohajer sold 124,510 shares of the business's stock in a transaction dated Friday, March 20th. The stock was sold at an average price of $6.79, for a total transaction of $845,422.90. Following the transaction, the chief executive officer owned 2,073,777 shares in the company, valued at $14,080,945.83. The trade was a 5.66% decrease in their position. The sale was disclosed in a document filed with the Securities & Exchange Commission, which is available at this link. Also, COO Michael Zagorsek sold 52,968 shares of the business's stock in a transaction dated Friday, March 20th. The shares were sold at an average price of $6.79, for a total value of $359,652.72. Following the transaction, the chief operating officer owned 1,734,491 shares in the company, valued at approximately $11,777,193.89. This represents a 2.96% decrease in their position. Additional details regarding this sale are available in the official SEC disclosure. Insiders have sold 307,973 shares of company stock worth $2,091,110 over the last 90 days. 8.84% of the stock is owned by insiders.

Institutional Inflows and Outflows

A number of hedge funds have recently bought and sold shares of SOUN. Vanguard Group Inc. increased its holdings in SoundHound AI by 16.4% during the 3rd quarter. Vanguard Group Inc. now owns 43,457,569 shares of the company's stock valued at $698,798,000 after purchasing an additional 6,132,648 shares during the period. Morgan Stanley grew its holdings in shares of SoundHound AI by 48.1% during the 4th quarter. Morgan Stanley now owns 8,987,522 shares of the company's stock worth $89,606,000 after acquiring an additional 2,917,280 shares during the period. UBS Group AG grew its holdings in shares of SoundHound AI by 77.6% during the 4th quarter. UBS Group AG now owns 6,124,283 shares of the company's stock worth $61,059,000 after acquiring an additional 2,676,707 shares during the period. Voloridge Investment Management LLC grew its holdings in shares of SoundHound AI by 2,259.7% during the 4th quarter. Voloridge Investment Management LLC now owns 2,199,511 shares of the company's stock worth $21,929,000 after acquiring an additional 2,106,298 shares during the period. Finally, Jump Financial LLC purchased a new position in shares of SoundHound AI during the 3rd quarter worth approximately $21,679,000. Hedge funds and other institutional investors own 19.28% of the company's stock.

About SoundHound AI

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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