SoundHound AI (NASDAQ:SOUN) Trading 6.7% Higher – Time to Buy?

Posted by Francis Steltz on Aug 6th, 2026

Shares of SoundHound AI, Inc. (NASDAQ:SOUN – Get Free Report) rose 6.7% during mid-day trading on Tuesday . The stock traded as high as $6.53 and last traded at $6.51. Approximately 22,574,802 shares were traded during trading, a decline of 20% from the average session volume of 28,332,811 shares. The stock had previously closed at $6.10.

SoundHound AI News Summary

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

Positive Sentiment: Record revenue and earnings beat: Second-quarter revenue reached $61.9 million, up 45% year over year and ahead of estimates near $52–$53 million. The company also reported a smaller-than-expected loss, with GAAP EPS of negative $0.10 versus expectations of approximately negative $0.13. Gross profit rose 67.6% to $27.9 million. SoundHound AI Reports Record Q2 and All Time High Revenue
Positive Sentiment: Higher outlook supports the bull case: SoundHound raised its fiscal 2026 revenue guidance to $230 million–$260 million, broadly around or above the $232.5 million consensus estimate. Management cited strong OASYS demand and growing enterprise adoption of its AI platform. SoundHound Q2 Earnings Beat on OASYS Demand
Positive Sentiment: Momentum and positioning amplified the move: Analysts largely praised the results and guidance, while unusually heavy call-option activity and SoundHound’s high short interest—reported at roughly 42%—may have contributed to short covering and additional buying pressure. SoundHound AI Soars as Wall Street Praises Results and Guidance
Neutral Sentiment: LivePerson transaction remains a potential catalyst: LivePerson is seeking shareholder support for its proposed acquisition by SoundHound, with an investor town hall planned to address the deal’s financial and operational implications. SoundHound AI Pushes LivePerson Deal
Negative Sentiment: Profitability remains a concern: SoundHound continued to post substantial losses, including a $43.3 million operating loss, $33.7 million in operating cash burn, and a negative net margin. Some commentary also points to execution and operational weaknesses beneath the headline results. Why SoundHound’s Post-Earnings Rally May Be Unsustainable
Negative Sentiment: Valuation caution persists: Piper Sandler lowered its price target from $8 to $7 and maintained a neutral rating. Reported insider transactions also show company executives selling shares without recent purchases, which could weigh on investor sentiment.

Analysts Set New Price Targets

Several brokerages have recently weighed in on SOUN. DA Davidson restated a “buy” rating and issued a $14.00 price objective on shares of SoundHound AI in a report on Wednesday, April 22nd. LADENBURG THALM/SH SH upgraded shares of SoundHound AI to a “strong-buy” rating in a research report on Wednesday, May 6th. Piper Sandler cut their price target on shares of SoundHound AI from $8.00 to $7.00 and set a “neutral” rating for the company in a report on Thursday. Finally, Weiss Ratings restated a “sell (e+)” rating on shares of SoundHound AI in a research report on Monday, June 15th. One research analyst has rated the stock with a Strong Buy rating, five have assigned a Buy rating, three have assigned a Hold rating and one has given a Sell rating to the company. According to data from MarketBeat.com, the stock presently has a consensus rating of “Moderate Buy” and a consensus price target of $14.64.

Check Out Our Latest Report on SoundHound AI

SoundHound AI Trading Up 10.1%

The stock has a market capitalization of $3.06 billion, a PE ratio of -15.06 and a beta of 2.64. The firm’s 50-day simple moving average is $6.84 and its two-hundred day simple moving average is $7.63.

SoundHound AI (NASDAQ:SOUN – Get Free Report) last announced its earnings results on Thursday, May 7th. The company reported ($0.06) earnings per share (EPS) for the quarter, missing the consensus estimate of ($0.05) by ($0.01). SoundHound AI had a negative net margin of 91.84% and a negative return on equity of 40.15%. The firm had revenue of $44.20 million for the quarter, compared to analyst estimates of $42.56 million. During the same period last year, the firm earned ($0.06) earnings per share. SoundHound AI’s revenue for the quarter was up 51.7% compared to the same quarter last year. As a group, research analysts expect that SoundHound AI, Inc. will post -0.45 earnings per share for the current year.

Insider Transactions at SoundHound AI

In other news, COO Michael Zagorsek sold 64,994 shares of the company’s stock in a transaction dated Monday, June 15th. The stock was sold at an average price of $7.46, for a total value of $484,855.24. Following the transaction, the chief operating officer owned 1,669,497 shares in the company, valued at $12,454,447.62. This represents a 3.75% decrease in their position. The sale was disclosed in a document filed with the Securities & Exchange Commission, which is available at this link. The sale was made to cover tax withholding obligations related to the vesting of equity awards. Also, insider James Ming Hom sold 28,843 shares of the stock in a transaction that occurred on Monday, June 15th. The stock was sold at an average price of $7.46, for a total transaction of $215,168.78. Following the completion of the sale, the insider directly owned 743,521 shares of the company’s stock, valued at $5,546,666.66. This trade represents a 3.73% 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. In the last 90 days, insiders sold 268,022 shares of company stock worth $1,999,444. 8.84% of the stock is currently owned by company insiders.

Institutional Inflows and Outflows

Institutional investors and hedge funds have recently added to or reduced their stakes in the stock. Vanguard Group Inc. lifted its position in SoundHound AI by 4.4% in the 4th quarter. Vanguard Group Inc. now owns 45,367,437 shares of the company’s stock worth $452,313,000 after buying an additional 1,909,868 shares in the last quarter. Geode Capital Management LLC grew its holdings 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 acquiring an additional 273,097 shares in the last quarter. Morgan Stanley increased its stake in shares of SoundHound AI by 48.1% in the fourth 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 last quarter. State Street Corp increased its stake in shares of SoundHound AI by 0.9% in the fourth quarter. State Street Corp now owns 8,691,235 shares of the company’s stock worth $86,652,000 after acquiring an additional 80,908 shares during the last quarter. Finally, UBS Group AG boosted its position in SoundHound AI by 77.6% during the fourth 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 last quarter. 19.28% of the stock is owned by hedge funds and other institutional investors.

SoundHound AI Company Profile

(Get Free Report)

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.