SoundHound AI (NASDAQ:SOUN) Stock Falls 1.6% – What’s Next?

Posted by Stanley Muller on Oct 7th, 2026

SoundHound AI, Inc. (NASDAQ:SOUN – Get Free Report) shares were down 1.6% on Wednesday. The company traded as low as $5.60 and last traded at $5.63. 14,499,866 shares traded hands during mid-day trading, a decline of 47% from the average session volume of 27,377,172 shares. The stock had previously closed at $5.72.

SoundHound AI News Roundup

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

Positive Sentiment: SoundHound is expanding its OASYS platform beyond automotive applications into televisions and other Internet of Things devices. The strategy could increase the number of connected endpoints using SoundHound’s conversational and “agentic” AI, potentially creating new transaction-related revenue opportunities. SoundHound Expands IoT Footprint: Can Agentic AI Reach More Devices?
Positive Sentiment: A Kia launch is extending SoundHound’s technology to more vehicles and consumers, supporting the company’s effort to broaden its automotive distribution and establish additional commercial partnerships. SoundHound AI stock falls as Kia launch expands reach
Positive Sentiment: Sell-side analysts collectively rate SOUN “Moderate Buy,” indicating that analysts generally see longer-term upside despite near-term execution and profitability risks. SoundHound AI Stock Now Rated Moderate Buy

Analyst Upgrades and Downgrades

SOUN has been the topic of several recent analyst reports. Wall Street Zen lowered SoundHound AI from a “sell” rating to a “strong sell” rating in a report on Saturday, September 26th. Weiss Ratings reiterated a “sell (e+)” rating on shares of SoundHound AI in a report on Friday, September 11th. DA Davidson cut their target price on SoundHound AI from $12.00 to $10.00 and set a “buy” rating on the stock in a research report on Thursday, August 6th. Finally, Piper Sandler decreased 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. 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 given a Sell rating to the company’s stock. Based on data from MarketBeat.com, SoundHound AI currently has an average rating of “Moderate Buy” and a consensus price target of $12.75.

Get Our Latest Stock Analysis on SOUN

SoundHound AI Stock Performance

The stock’s 50-day moving average is $6.58 and its 200 day moving average is $7.04. The stock has a market capitalization of $2.50 billion, a PE ratio of -14.82 and a beta of 2.73.

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 for the quarter, beating 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 firm had revenue of $61.90 million during the quarter, compared to analysts’ expectations of $52.38 million. During the same period in the previous year, the company earned ($0.19) earnings per share. SoundHound AI’s quarterly revenue was up 45.0% compared to the same quarter last year. Analysts expect that SoundHound AI, Inc. will post -0.32 earnings per share for the current year.

Insider Transactions at SoundHound AI

In related news, insider James Hom sold 38,730 shares of the firm’s stock in a transaction that occurred on Tuesday, September 15th. The stock was sold at an average price of $6.33, for a total transaction of $245,160.90. Following the transaction, the insider owned 1,105,555 shares in the company, valued at $6,998,163.15. This trade represents a 3.38% decrease in their position. The transaction was disclosed in a filing with the SEC, which is available through the SEC website. The sale was made to cover tax withholding obligations related to the vesting of equity awards. Also, COO Michael Zagorsek sold 71,113 shares of SoundHound AI stock in a transaction that occurred on Tuesday, September 15th. The stock was sold at an average price of $6.33, for a total value of $450,145.29. Following the transaction, the chief operating officer directly owned 2,600,231 shares in the company, valued at approximately $16,459,462.23. This trade represents a 2.66% decrease in their position. 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 have sold a total of 288,758 shares of company stock worth $1,828,598 over the last three months. 8.84% of the stock is currently owned by company insiders.

Hedge Funds Weigh In On SoundHound AI

A number of hedge funds have recently modified their holdings of the business. SHP Wealth Management purchased a new stake in SoundHound AI in the 4th quarter valued at $27,000. Hollencrest Capital Management grew its position in SoundHound AI by 197.5% during the 1st quarter. Hollencrest Capital Management now owns 3,615 shares of the company’s stock worth $25,000 after purchasing an additional 2,400 shares during the last quarter. Vermillion Wealth Management Inc. grew its position in SoundHound AI by 92.0% during the 1st quarter. Vermillion Wealth Management Inc. now owns 9,200 shares of the company’s stock worth $63,000 after purchasing an additional 4,409 shares during the last quarter. Clarus Group Inc. acquired a new position in SoundHound AI in the first quarter valued at $69,000. Finally, 180 Wealth Advisors LLC acquired a new position in SoundHound AI in the first quarter valued at $69,000. 19.28% of the stock is currently owned by hedge funds and other institutional investors.

SoundHound AI Company Profile

(Get Free Report)

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.