SoundHound AI (NASDAQ:SOUN) Trading Up 4.7% - Still a Buy?

Key Points

• Shares rose about 4.7% to $8.19 on heavier volume after SoundHound’s roughly $43M acquisition of LivePerson, which analysts say could materially expand its addressable market and imply up to ~$500M long‑term revenue opportunity, though integration risk and negative commentary (e.g., Jim Cramer) could increase volatility.
• Wall Street is mixed but leans positive: the consensus rating is a Moderate Buy with an average price target of $14.93, while individual targets range from $9 to $20 and several firms have reiterated buy ratings.
• Operationally SoundHound shows strong revenue growth (quarterly revenue +59.4% YoY) but remains unprofitable with negative margins and EPS, insiders have recently sold shares, and the company’s May 7 Q1 results/webcast are a near‑term catalyst.

SoundHound AI, Inc. (NASDAQ:SOUN - Get Free Report) was up 4.7% during trading on Friday . The stock traded as high as $8.39 and last traded at $8.19. Approximately 28,694,290 shares were traded during mid-day trading, an increase of 7% from the average daily volume of 26,766,766 shares. The stock had previously closed at $7.82.

Trending Headlines about SoundHound AI

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

• Positive Sentiment: LivePerson acquisition seen as transformational for omnichannel conversational AI; deal combines SoundHound’s voice/agentic AI with LivePerson’s messaging/chat footprint, which could materially expand addressable market and valuation upside. SoundHound AI Acquisition Of LivePerson Reshapes Omnichannel AI And Valuation
• Positive Sentiment: Wedbush and other sell‑side commentary view the ~ $43M LivePerson deal as strengthening SoundHound’s competitive position in AI customer engagement — a bullish signal from a key AI/tech analyst. SoundHound AI strengthens position with LivePerson acquisition, says Wedbush
• Positive Sentiment: DA Davidson reiterated a Buy rating, supporting investor confidence that Street analysts see upside from recent strategic moves and execution. DA Davidson Reiterates Buy Rating for SoundHound AI NASDAQ: SOUN
• Positive Sentiment: Casey’s expanded deployment across ~2,600 stores confirms commercial traction for SoundHound’s AI ordering agents and recurring revenue potential from large retail customers. Casey’s Expands Partnership with SoundHound AI
• Positive Sentiment: Analysts and coverage note the LivePerson deal could open a sizable revenue opportunity (some estimates cite up to ~$500M long‑term), bolstering the bull case for multiple expansion if integration succeeds. SoundHound vs. Cerence: Which Voice AI Stock Has Stronger Potential?
• Neutral Sentiment: Coverage pieces (e.g., The Motley Fool) flag the acquisition as potentially positive but caution it will take time for benefits to materialize — implying patience is required for the thesis to play out. Is SoundHound AI's Latest Acquisition a Game Changer for the Stock?
• Neutral Sentiment: SoundHound will report Q1 results and host a webcast on May 7 — an event that could re‑rate the stock depending on revenue guidance and integration commentary. SoundHound AI To Report 2026 First Quarter Financial Results
• Negative Sentiment: High‑profile negative commentary — notably Jim Cramer’s “We cannot be in SoundHound” remark — injects short‑term sentiment pressure and can amplify volatility despite fundamental positives. Cramer's lightning round: 'We cannot be in SoundHound'
• Negative Sentiment: TheStreet and other outlets note nuances and risks around the LivePerson deal and execution — reminders that integration risk, margins and near‑term profitability remain concerns. Wedbush has blunt message for SoundHound AI stock investors

Wall Street Analysts Forecast Growth

Several analysts recently commented on SOUN shares. HC Wainwright reduced their price objective on shares of SoundHound AI from $26.00 to $20.00 and set a "buy" rating for the company in a research note on Monday, March 2nd. Piper Sandler reiterated a "neutral" rating and issued a $9.00 price objective (down from $11.00) on shares of SoundHound AI in a research note on Friday, February 27th. Weiss Ratings reiterated a "sell (d-)" rating on shares of SoundHound AI in a research note on Friday, January 9th. DA Davidson restated a "buy" rating and set a $14.00 target price on shares of SoundHound AI in a research report on Wednesday. Finally, Zacks Research upgraded shares of SoundHound AI from a "strong sell" rating to a "hold" rating in a research report on Monday, February 9th. One research 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 given a Sell rating to the company. According to MarketBeat.com, the stock currently has an average rating of "Moderate Buy" and an average price target of $14.93.

SoundHound AI Price Performance

The company has a market cap of $3.47 billion, a price-to-earnings ratio of -163.97 and a beta of 2.71. The business's 50-day simple moving average is $7.44 and its 200-day simple moving average is $10.90.

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

Insider Buying and Selling at SoundHound AI

In other news, SVP Majid Emami sold 31,019 shares of SoundHound AI stock in a transaction dated Friday, March 20th. The shares were sold at an average price of $6.79, for a total transaction of $210,619.01. Following the completion of the sale, the senior vice president directly owned 501,826 shares in the company, valued at $3,407,398.54. The trade was a 5.82% decrease in their ownership of the stock. The sale was disclosed in a filing with the SEC, which is available through the SEC website. Also, CFO Nitesh Sharan sold 44,027 shares of SoundHound AI stock in a transaction dated Friday, March 20th. The stock was sold at an average price of $6.79, for a total transaction of $298,943.33. Following the sale, the chief financial officer owned 1,661,121 shares of the company's stock, valued at approximately $11,279,011.59. This trade represents a 2.58% decrease in their ownership of the stock. Additional details regarding this sale are available in the official SEC disclosure. Over the last quarter, insiders sold 307,973 shares of company stock valued at $2,091,110. Corporate insiders own 9.17% of the company's stock.

Institutional Investors Weigh In On SoundHound AI

A number of hedge funds and other institutional investors have recently modified their holdings of the company. Sound Income Strategies LLC grew its holdings in shares of SoundHound AI by 37.3% during the third quarter. Sound Income Strategies LLC now owns 2,116 shares of the company's stock worth $34,000 after buying an additional 575 shares in the last quarter. EP Wealth Advisors LLC grew its holdings in shares of SoundHound AI by 5.3% during the second quarter. EP Wealth Advisors LLC now owns 14,100 shares of the company's stock worth $151,000 after buying an additional 706 shares in the last quarter. Newbridge Financial Services Group Inc. grew its holdings in shares of SoundHound AI by 2.7% during the third quarter. Newbridge Financial Services Group Inc. now owns 31,880 shares of the company's stock worth $513,000 after buying an additional 830 shares in the last quarter. Insigneo Advisory Services LLC grew its holdings in shares of SoundHound AI by 7.4% during the third quarter. Insigneo Advisory Services LLC now owns 12,416 shares of the company's stock worth $200,000 after buying an additional 858 shares in the last quarter. Finally, Clear Creek Financial Management LLC grew its holdings in shares of SoundHound AI by 1.6% during the fourth quarter. Clear Creek Financial Management LLC now owns 58,091 shares of the company's stock worth $579,000 after buying an additional 941 shares in the last quarter. 19.28% of the stock is currently 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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