SoundHound AI (NASDAQ:SOUN) Hits New 1-Year Low – Here’s What Happened

Posted by Stanley Muller on Oct 15th, 2026

SoundHound AI, Inc. (NASDAQ:SOUN – Get Free Report) shares reached a new 52-week low during mid-day trading on Tuesday. The company traded as low as $4.96 and last traded at $4.97, with a volume of 20,345,551 shares changing hands. The stock had previously closed at $5.39.

Key SoundHound AI News

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

Positive Sentiment: Global Kia launch expands automotive opportunity: SoundHound’s voice and generative AI platform is now powering the Kia AI Assistant in the Kia Sorento in India. The deployment, using SoundHound’s OASYS platform, is being described as a global first for real-time generative AI in vehicles and could support broader automaker adoption. What Could SoundHound AI First In-Car AI Launch Mean for Investors?
Positive Sentiment: LivePerson acquisition adds enterprise reach: The September acquisition gives SoundHound access to customers that include 25 Fortune 100 companies, potentially increasing the scale of its conversational and agentic AI offerings. Investors, however, will look for evidence that the deal translates into revenue and operating leverage. SoundHound Eyes 25 Fortune 100 Brands
Neutral Sentiment: Investors are reassessing valuation: The Kia announcement has renewed attention on whether SOUN’s valuation is justified by its sales base. The stock’s substantial three-year gain contrasts with its steep 2026 decline, leaving investors divided between viewing the lower valuation as an opportunity or a warning sign. SoundHound Stock Trades at a Discount
Negative Sentiment: Profitability remains the central concern: Persistent net losses, negative cash flow and uncertainty about when SoundHound can reach profitability continue to weigh on sentiment. Analysts also cite acquisition-related execution risks, while the stock has underperformed the broader market even as enterprise software shares advanced. SoundHound AI Just Dropped 22% in a Month

Wall Street Analyst Weigh In

A number of research analysts have recently commented on the company. DA Davidson cut their price target on SoundHound AI from $12.00 to $10.00 and set a “buy” rating for the company in a report on Thursday, August 6th. Piper Sandler reduced their price objective on SoundHound AI from $7.00 to $6.00 and set a “neutral” rating for the company in a research report on Tuesday, September 22nd. Wall Street Zen downgraded shares of SoundHound AI from a “sell” rating to a “strong sell” rating in a research note on Saturday, September 26th. Finally, Weiss Ratings restated a “sell (e+)” rating on shares of SoundHound AI in a research note on Friday, September 11th. One 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 stock. Based on data from MarketBeat, the company presently has a consensus rating of “Moderate Buy” and an average target price of $12.75.

Get Our Latest Report on SOUN

SoundHound AI Trading Down 7.2%

The firm’s fifty day moving average price is $6.46 and its 200-day moving average price is $6.98. The company has a market cap of $2.01 billion, a P/E ratio of -11.92 and a beta of 2.73.

SoundHound AI (NASDAQ:SOUN – Get Free Report) last released its earnings results on Wednesday, August 5th. The company reported ($0.02) earnings per share for the quarter, beating the consensus estimate 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 business had revenue of $61.90 million during the quarter, compared to analysts’ expectations of $52.38 million. During the same quarter last year, the company earned ($0.19) earnings per share. The firm’s revenue was up 45.0% on a year-over-year basis. As a group, research analysts forecast that SoundHound AI, Inc. will post -0.32 earnings per share for the current fiscal year.

Insider Transactions at SoundHound AI

In other SoundHound AI news, SVP Majid Emami sold 38,730 shares of the company’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 value of $245,160.90. Following the completion of the transaction, the senior vice president owned 834,253 shares of the company’s stock, valued at $5,280,821.49. This represents a 4.44% decrease in their position. The transaction was disclosed in a legal filing with the SEC, which is available at this link. 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 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 value of $450,145.29. Following the completion of the sale, the chief operating officer owned 2,600,231 shares of the company’s stock, valued at $16,459,462.23. This represents a 2.66% decrease in their position. The SEC filing for this sale provides additional information. The sale was made to cover tax withholding obligations related to the vesting of equity awards. In the last quarter, insiders sold 288,758 shares of company stock worth $1,828,598. Insiders own 8.84% of the company’s stock.

Institutional Inflows and Outflows

A number of large investors have recently modified their holdings of SOUN. Hollencrest Capital Management raised its stake in shares of SoundHound AI by 197.5% in the 1st 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 in the last quarter. SHP Wealth Management acquired a new stake in shares of SoundHound AI during the 4th quarter valued at about $27,000. Krilogy Financial LLC acquired a new stake in shares of SoundHound AI during the 3rd quarter valued at about $62,000. Vermillion Wealth Management Inc. boosted its position in shares of SoundHound AI by 92.0% during the 1st quarter. Vermillion Wealth Management Inc. now owns 9,200 shares of the company’s stock valued at $63,000 after acquiring an additional 4,409 shares in the last quarter. Finally, Clarus Group Inc. bought a new stake in SoundHound AI in the first quarter valued at about $69,000. 19.28% of the stock is currently owned by institutional investors and hedge funds.

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.