SoundHound AI (NASDAQ:SOUN) Shares Down 7.2% – What’s Next?
by Mitch Edgeman · The Markets DailySoundHound AI, Inc. (NASDAQ:SOUN – Get Free Report) shares fell 7.2% during mid-day trading on Wednesday. The stock traded as low as $4.53 and last traded at $4.53. 19,164,195 shares were traded during mid-day trading, a decline of 29% from the average session volume of 27,124,564 shares. The stock had previously closed at $4.88.
SoundHound AI News Summary
Here are the key news stories impacting SoundHound AI this week:
- Positive Sentiment: SoundHound launched its real-time generative voice AI in Kia’s Sorento vehicles in India, using its OASYS platform for conversational, hands-free in-car assistance. The deployment is presented as a global and category first, potentially strengthening SoundHound’s automotive credentials and providing a model for future vehicle partnerships. What Could SoundHound AI First In Car AI Launch Mean For Investors?
- Positive Sentiment: The September 2026 completion of the LivePerson acquisition gives SoundHound access to customers that include 25 Fortune 100 companies. Management could use that customer base to expand conversational and agentic AI offerings and accelerate enterprise sales. SoundHound Eyes 25 Fortune 100 Brands
- Neutral Sentiment: The Kia launch is strategically important, but the reports provide limited details on near-term revenue, margins or the number of vehicles involved. Investors therefore still need evidence that automotive deployments can scale into material financial results. SoundHound AI Stock Looks Pricey Despite New India Car AI Launch
- Negative Sentiment: Analysts continue to question SoundHound’s valuation relative to its sales base, particularly after a 51.1% share-price plunge. Persistent operating losses, negative cash flow and uncertainty over the path to profitability make the stock look potentially like a warning sign rather than a bargain. SoundHound Stock Trades at a Discount
- Negative Sentiment: SOUN has fallen substantially while the broader market and enterprise software stocks advanced, suggesting company-specific concerns. Commentary highlights cash consumption, acquisition-integration risks and the contrast with more profitable technology businesses. SoundHound AI Just Dropped 22% in a Month
Analysts Set New Price Targets
SOUN has been the subject of several recent analyst reports. DA Davidson dropped their price objective on SoundHound AI from $12.00 to $10.00 and set a “buy” rating for the company in a research report on Thursday, August 6th. Weiss Ratings reiterated a “sell (e+)” rating on shares of SoundHound AI in a research report on Friday, September 11th. Piper Sandler lowered their target price on SoundHound AI from $7.00 to $6.00 and set a “neutral” rating for the company in a research note on Tuesday, September 22nd. Finally, Wall Street Zen cut shares of SoundHound AI from a “sell” rating to a “strong sell” rating in a report on Saturday, September 26th. One investment analyst has rated the stock with a Strong Buy rating, three have issued a Buy rating, two have given a Hold rating and one has issued a Sell rating to the company. According to data from MarketBeat, SoundHound AI currently has an average rating of “Moderate Buy” and an average price target of $12.75.
Get Our Latest Stock Report on SOUN
SoundHound AI Price Performance
The company has a market capitalization of $2.01 billion, a price-to-earnings ratio of -11.92 and a beta of 2.73. The firm’s fifty day moving average price is $6.49 and its 200-day moving average price is $7.00.
SoundHound AI (NASDAQ:SOUN – Get Free Report) last announced its quarterly earnings results on Wednesday, August 5th. The company reported ($0.02) EPS for the quarter, beating analysts’ consensus estimates of ($0.13) by $0.11. SoundHound AI had a negative return on equity of 30.22% and a negative net margin of 67.45%. The company had revenue of $61.90 million during the quarter, compared to analysts’ expectations of $52.38 million. During the same period in the prior year, the company earned ($0.19) EPS. SoundHound AI’s revenue was up 45.0% compared to the same quarter last year. On average, research analysts predict that SoundHound AI, Inc. will post -0.32 earnings per share for the current year.
Insider Transactions at SoundHound AI
In other news, insider James Hom sold 38,730 shares of SoundHound AI stock in a transaction dated Tuesday, September 15th. The stock was sold at an average price of $6.33, for a total transaction of $245,160.90. Following the sale, the insider directly owned 1,105,555 shares of the company’s stock, valued at approximately $6,998,163.15. This trade represents a 3.38% decrease in their ownership of the stock. The sale was disclosed in a document filed with the SEC, which can be accessed through the SEC website. The sale was made to cover tax withholding obligations related to the vesting of equity awards. Also, CEO Keyvan Mohajer sold 137,290 shares of the business’s stock in a transaction dated Tuesday, September 15th. The stock was sold at an average price of $6.33, for a total value of $869,045.70. Following the sale, the chief executive officer owned 3,684,947 shares in the company, valued at approximately $23,325,714.51. This trade represents a 3.59% 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. Insiders sold 288,758 shares of company stock worth $1,828,598 in the last 90 days. 8.84% of the stock is currently owned by company insiders.
Institutional Inflows and Outflows
A number of large investors have recently added to or reduced their stakes in the business. Hilltop Holdings Inc. raised its stake in shares of SoundHound AI by 3.5% in the first quarter. Hilltop Holdings Inc. now owns 51,358 shares of the company’s stock worth $353,000 after purchasing an additional 1,753 shares during the last quarter. Sterling Investment Counsel LLC lifted its holdings in shares of SoundHound AI by 10.5% in the first quarter. Sterling Investment Counsel LLC now owns 22,787 shares of the company’s stock valued at $157,000 after purchasing an additional 2,173 shares in the last quarter. Empowered Funds LLC boosted its position in shares of SoundHound AI by 19.6% during the first quarter. Empowered Funds LLC now owns 13,896 shares of the company’s stock valued at $95,000 after buying an additional 2,277 shares during the last quarter. Hollencrest Capital Management boosted its position in shares of SoundHound AI by 197.5% during the first quarter. Hollencrest Capital Management now owns 3,615 shares of the company’s stock valued at $25,000 after buying an additional 2,400 shares during the last quarter. Finally, Keynote Financial Services LLC grew its holdings in SoundHound AI by 6.9% during the first quarter. Keynote Financial Services LLC now owns 37,321 shares of the company’s stock worth $256,000 after buying an additional 2,405 shares in the last quarter. Institutional investors own 19.28% of the company’s stock.
About SoundHound AI
SoundHound AI, Inc develops voice artificial intelligence technologies that enable people to interact with products and services using natural language. Its platform is designed to understand conversational speech, answer questions, and support voice-enabled experiences across automotive, restaurant, consumer electronics and other industries.
The company’s offerings include the Houndify voice AI platform, which businesses can use to build customized voice assistants, and SoundHound Chat AI, a conversational assistant designed to provide responses and complete tasks through voice interaction.