SoundHound AI (NASDAQ:SOUN) Shares Up 10.1% – Still a Buy?

Posted by Brenda Bartman on Aug 6th, 2026

Shares of SoundHound AI, Inc. (NASDAQ:SOUN – Get Free Report) rose 10.1% during mid-day trading on Thursday . The company traded as high as $8.19 and last traded at $7.08. Approximately 88,400,921 shares changed hands during mid-day trading, an increase of 207% from the average daily volume of 28,773,703 shares. The stock had previously closed at $6.43.

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 equities analysts have recently commented on SOUN shares. Piper Sandler lowered their price target on shares of SoundHound AI from $8.00 to $7.00 and set a “neutral” rating for the company in a research report on Thursday. DA Davidson reissued a “buy” rating and set a $14.00 target price on shares of SoundHound AI in a research note 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. Finally, Weiss Ratings reaffirmed a “sell (e+)” rating on shares of SoundHound AI in a report on Monday, June 15th. One equities research analyst has rated the stock with a Strong Buy rating, five have issued a Buy rating, three have issued a Hold rating and one has given a Sell rating to the company’s stock. According to data from MarketBeat.com, SoundHound AI has an average rating of “Moderate Buy” and an average target price of $14.64.

View Our Latest Stock Report on SoundHound AI

SoundHound AI Trading Up 9.8%

The stock has a market cap of $3.06 billion, a P/E ratio of -15.02 and a beta of 2.64. The stock’s 50-day moving average is $6.84 and its 200-day moving average is $7.63.

SoundHound AI (NASDAQ:SOUN – Get Free Report) last issued its quarterly earnings results on Thursday, May 7th. The company reported ($0.06) earnings per share for the quarter, missing analysts’ consensus estimates of ($0.05) by ($0.01). The company had revenue of $44.20 million during the quarter, compared to analyst estimates of $42.56 million. SoundHound AI had a negative return on equity of 40.15% and a negative net margin of 91.84%.The company’s revenue was up 51.7% on a year-over-year basis. During the same period in the prior year, the company posted ($0.06) earnings per share. On average, equities analysts forecast that SoundHound AI, Inc. will post -0.45 EPS for the current year.

Insider Activity

In other news, COO Michael Zagorsek sold 64,994 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 value of $484,855.24. Following the completion of the sale, 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 ownership of the stock. The sale was disclosed in a filing with the SEC, which is available through this link. The sale was made to cover tax withholding obligations related to the vesting of equity awards. Also, SVP Majid Emami sold 28,843 shares of the firm’s stock in a transaction dated Monday, June 15th. The shares were sold at an average price of $7.46, for a total value of $215,168.78. Following the transaction, the senior vice president directly owned 472,983 shares of the company’s stock, valued at $3,528,453.18. This represents a 5.75% decrease in their position. Additional details regarding this sale are available in the official SEC disclosure. The sale was made to cover tax withholding obligations related to the vesting of equity awards. Insiders sold a total of 268,022 shares of company stock worth $1,999,444 in the last quarter. 8.84% of the stock is currently owned by corporate insiders.

Institutional Investors Weigh In On SoundHound AI

Institutional investors and hedge funds have recently bought and sold shares of the business. Danske Bank A S bought a new position in shares of SoundHound AI during the 3rd quarter valued at about $26,000. Northwestern Mutual Wealth Management Co. lifted its stake in SoundHound AI by 83.1% during 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 during the last quarter. Dogwood Wealth Management LLC lifted its stake in SoundHound AI by 152.1% during the fourth quarter. Dogwood Wealth Management LLC now owns 2,559 shares of the company’s stock valued at $26,000 after purchasing an additional 1,544 shares during the last quarter. SHP Wealth Management bought a new stake in SoundHound AI during the fourth quarter worth approximately $27,000. Finally, Parallel Advisors LLC boosted its holdings in SoundHound AI by 42.8% during the third 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 owned by institutional investors and hedge funds.

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.