SoundHound AI (NASDAQ:SOUN) Stock Price Down 5.6% – Here’s What Happened

SoundHound AI, Inc. (NASDAQ:SOUN)’s share price dropped 5.6% during trading on Tuesday . The company traded as low as $7.79 and last traded at $7.85. Approximately 54,512,430 shares changed hands during trading, an increase of 105% from the average daily volume of 26,571,818 shares. The stock had previously closed at $8.32.

SoundHound AI News Roundup

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

• Positive Sentiment: Casey’s expanded its deployment of SoundHound’s AI ordering agents to more than 2,600 stores, with the technology having already handled 21+ million guest interactions — a clear commercial win that supports recurring revenue growth. Casey’s Expands Partnership with SoundHound AI
• Positive Sentiment: The planned acquisition of LivePerson positions SoundHound to combine voice-led AI with large-scale digital messaging, creating an omnichannel platform and management says it opens as much as a ~$500M revenue opportunity. This deal is central to the bullish case for scale and cross‑sell. Acquisition Reshapes Omnichannel AI
• Positive Sentiment: Broker support: Wedbush flagged the LivePerson buy as position‑strengthening, and DA Davidson reaffirmed a Buy with a $14 price target, implying material upside from current levels. These analyst views help underpin investor confidence. Wedbush Commentary DA Davidson Reaffirmation
• Neutral Sentiment: Upcoming earnings: SoundHound will report Q1 results and host a webcast on May 7 — a potential catalyst that could clarify near‑term revenue and margin trajectory but also adds short‑term uncertainty. Q1 Results Announcement
• Neutral Sentiment: Analyst/sector pieces are comparing SOUN to peers (e.g., Cerence) and modeling the LivePerson opportunity; these notes provide frameworks for upside but don’t remove execution risk. SoundHound vs. Cerence Analysis
• Negative Sentiment: Despite the headlines, the stock has traded down recently on high volume — investors appear cautious about integration risk from the LivePerson deal, near‑term dilution/financial impact and the company’s negative margins and net losses. Recent Share Weakness

Analyst Upgrades and Downgrades

SOUN has been the subject of a number of research reports. Weiss Ratings reaffirmed a “sell (d-)” rating on shares of SoundHound AI in a report on Friday, January 9th. Zacks Research raised SoundHound AI from a “strong sell” rating to a “hold” rating in a report on Monday, February 9th. HC Wainwright decreased their target price on SoundHound AI from $26.00 to $20.00 and set a “buy” rating for the company in a report on Monday, March 2nd. Piper Sandler reaffirmed a “neutral” rating and set a $9.00 target price (down from $11.00) on shares of SoundHound AI in a report on Friday, February 27th. Finally, DA Davidson reaffirmed a “buy” rating and set a $14.00 target price on shares of SoundHound AI in a report on Wednesday. One analyst has rated the stock with a Strong Buy rating, five have assigned a Buy rating, three have given a Hold rating and one has given a Sell rating to the stock. According to MarketBeat.com, the company currently has an average rating of “Moderate Buy” and a consensus target price of $14.93.

SoundHound AI Price Performance

The company has a market capitalization of $3.31 billion, a price-to-earnings ratio of -156.37 and a beta of 2.71. The stock has a fifty day simple moving average of $7.43 and a 200-day simple moving average of $10.92.

SoundHound AI (NASDAQ:SOUN) last announced its quarterly earnings results on Thursday, February 26th. The company reported ($0.02) earnings per share (EPS) for the quarter, meeting analysts’ consensus estimates of ($0.02). SoundHound AI had a negative return on equity of 3.63% and a negative net margin of 8.71%.The company had revenue of $55.06 million during the quarter, compared to the consensus estimate of $53.88 million. During the same period in the previous year, the company posted ($0.05) earnings per share. SoundHound AI’s revenue for the quarter was up 59.4% on a year-over-year basis. As a group, equities analysts expect that SoundHound AI, Inc. will post -0.34 EPS for the current fiscal year.

Insider Buying and Selling

In other SoundHound AI news, CEO Keyvan Mohajer sold 124,510 shares of the business’s stock in a transaction that occurred on Friday, March 20th. The stock was sold at an average price of $6.79, for a total value of $845,422.90. Following the completion of the transaction, the chief executive officer directly owned 2,073,777 shares of the company’s stock, valued at approximately $14,080,945.83. The trade was a 5.66% decrease in their ownership of the stock. The sale was disclosed in a legal filing with the SEC, which can be accessed through this link. Also, insider James Ming Hom sold 31,019 shares of the company’s stock in a transaction that occurred on Friday, March 20th. The stock was sold at an average price of $6.79, for a total value of $210,619.01. Following the transaction, the insider directly owned 772,364 shares of the company’s stock, valued at approximately $5,244,351.56. The trade was a 3.86% decrease in their ownership of the stock. Additional details regarding this sale are available in the official SEC disclosure. Insiders sold a total of 307,973 shares of company stock valued at $2,091,110 in the last three months. 9.17% of the stock is currently owned by company insiders.

Institutional Inflows and Outflows

Several large investors have recently made changes to their positions in the business. Vanguard Group Inc. raised its stake in shares of SoundHound AI by 4.4% during 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 during the period. Geode Capital Management LLC raised its stake 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 worth $91,543,000 after buying an additional 273,097 shares during the period. Morgan Stanley raised its stake in shares of SoundHound AI by 48.1% during the 4th quarter. Morgan Stanley now owns 8,987,522 shares of the company’s stock worth $89,606,000 after buying an additional 2,917,280 shares during the period. State Street Corp raised its stake in shares of SoundHound AI by 0.9% during the 4th quarter. State Street Corp now owns 8,691,235 shares of the company’s stock worth $86,652,000 after buying an additional 80,908 shares during the period. Finally, UBS Group AG raised its stake in shares of SoundHound AI by 77.6% during the 4th quarter. UBS Group AG now owns 6,124,283 shares of the company’s stock worth $61,059,000 after buying an additional 2,676,707 shares during the period. 19.28% of the stock is owned by institutional investors and hedge funds.

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.