SoundHound AI (NASDAQ:SOUN) Upgraded to Sell at Wall Street Zen

Key Points

• Wall Street Zen upgraded SoundHound AI from “strong sell” to “sell,” while the broader analyst consensus remains “Moderate Buy” with a $13.60 target price.
• SoundHound reported better-than-expected quarterly results, including revenue of $61.9 million—up 45% year over year—and an EPS loss of $0.02 versus the $0.13 expected loss.
• Despite strong growth and optimism around its AI platform, the company remains unprofitable, with negative margins and continued cash-burn concerns; insiders also sold about $2 million of shares during the latest quarter.

SoundHound AI (NASDAQ:SOUN - Get Free Report) was upgraded by research analysts at Wall Street Zen from a "strong sell" rating to a "sell" rating in a report issued on Saturday.

Several other research firms have also recently issued reports on SOUN. DA Davidson cut their target price on SoundHound AI from $12.00 to $10.00 and set a "buy" rating for the company in a research note on Thursday, August 6th. LADENBURG THALM/SH SH raised SoundHound AI to a "strong-buy" rating in a research note on Wednesday, May 6th. Piper Sandler cut their price objective on SoundHound AI from $8.00 to $7.00 and set a "neutral" rating for the company in a research report on Thursday, August 6th. Finally, Weiss Ratings restated a "sell (e+)" rating on shares of SoundHound AI in a report on Monday, June 15th. One analyst has rated the stock with a Strong Buy rating, four have assigned a Buy rating, three have given a Hold rating and one has issued a Sell rating to the company's stock. According to MarketBeat, the stock presently has a consensus rating of "Moderate Buy" and a consensus target price of $13.60.

SoundHound AI Price Performance

NASDAQ:SOUN opened at $7.43 on Friday. The firm has a market capitalization of $3.22 billion, a price-to-earnings ratio of -19.55 and a beta of 2.64. The company's 50-day moving average is $6.71 and its two-hundred day moving average is $7.49. SoundHound AI has a 1-year low of $5.65 and a 1-year high of $22.17.

SoundHound AI (NASDAQ:SOUN - Get Free Report) last announced its quarterly earnings results on Wednesday, August 5th. The company reported ($0.02) earnings per share (EPS) for the quarter, topping analysts' consensus estimates of ($0.13) by $0.11. SoundHound AI had a negative net margin of 67.45% and a negative return on equity of 30.22%. The business had revenue of $61.90 million during the quarter, compared to the consensus estimate of $52.38 million. During the same quarter last year, the firm earned ($0.19) EPS. The business's revenue was up 45.0% compared to the same quarter last year. As a group, equities analysts anticipate that SoundHound AI will post -0.33 earnings per share for the current fiscal year.

Insider Buying and Selling

In other SoundHound AI news, CTO Timothy Stonehocker sold 18,802 shares of the company's stock in a transaction on Monday, June 15th. The stock was sold at an average price of $7.46, for a total transaction of $140,262.92. Following the transaction, the chief technology officer directly owned 502,290 shares in the company, valued at $3,747,083.40. This represents a 3.61% decrease in their ownership of the stock. The transaction was disclosed in a document filed with the Securities & Exchange Commission, which is available at the SEC website. The sale was made to cover tax withholding obligations related to the vesting of equity awards. Also, CEO Keyvan Mohajer sold 126,540 shares of SoundHound AI stock in a transaction on Monday, June 15th. The shares were sold at an average price of $7.46, for a total value of $943,988.40. Following the completion of the sale, the chief executive officer directly owned 1,947,237 shares of the company's stock, valued at $14,526,388.02. The trade was a 6.10% decrease in their ownership of the stock. The SEC filing for this sale provides additional information. The sale was made to cover tax withholding obligations related to the vesting of equity awards. Insiders have sold 268,022 shares of company stock valued at $1,999,444 over the last quarter. 8.84% of the stock is owned by corporate insiders.

Institutional Trading of SoundHound AI

Institutional investors and hedge funds have recently bought and sold shares of the business. Danske Bank A S purchased a new position in shares of SoundHound AI in the third quarter valued at approximately $26,000. Northwestern Mutual Wealth Management Co. grew its holdings in shares of SoundHound AI by 83.1% in the second quarter. Northwestern Mutual Wealth Management Co. now owns 2,336 shares of the company's stock valued at $25,000 after purchasing an additional 1,060 shares in the last quarter. Dogwood Wealth Management LLC increased its stake in SoundHound AI by 152.1% during the 4th quarter. Dogwood Wealth Management LLC now owns 2,559 shares of the company's stock worth $26,000 after buying an additional 1,544 shares during the period. SHP Wealth Management acquired a new stake in SoundHound AI during the 4th quarter worth approximately $27,000. Finally, Parallel Advisors LLC lifted its holdings in SoundHound AI by 42.8% during the 3rd quarter. Parallel Advisors LLC now owns 3,204 shares of the company's stock worth $52,000 after buying an additional 960 shares in the last quarter. 19.28% of the stock is currently owned by hedge funds and other institutional investors.

Key SoundHound AI News

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

• Positive Sentiment: SoundHound’s record second-quarter results exceeded expectations, with revenue rising 45% year over year to $61.9 million and adjusted losses narrowing significantly. Management also raised its 2026 revenue outlook, strengthening the growth narrative. SoundHound's Q2 Results Fuel Estimate Hikes: Is the Stock a Buy Now?
• Positive Sentiment: Rapid adoption of the OASYS agentic-AI platform is reportedly shortening sales cycles and accelerating customer onboarding, offering a potential catalyst for sustained enterprise growth. 5 Must-Read Analyst Questions From SoundHound AI’s Q2 Earnings Call
• Positive Sentiment: Analyst optimism remains strong: the average Wall Street price target is approximately $12.71, while one prominent analyst cited potential gains of about 167% if the market begins valuing SoundHound more in line with its revenue growth. SoundHound Shed a Quarter of Its Value Over 12 Months: 167% Gains To Follow Says A Prominent Analyst
• Neutral Sentiment: Northland Securities improved its full-year 2026 and 2027 EPS forecasts, but still expects SoundHound to remain unprofitable, with estimated losses of $0.38 per share in 2026 and $0.32 in 2027.
• Negative Sentiment: Investors remain concerned about ongoing cash burn, negative margins and the company’s premium valuation. SoundHound’s strong revenue growth has not yet translated into profits, creating pressure for execution to remain excellent.
• Negative Sentiment: Northland lowered its fourth-quarter 2026 EPS forecast to a $0.11 loss from a $0.10 loss, underscoring that profitability remains a longer-term objective despite better growth estimates.

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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