SoundHound AI (NASDAQ:SOUN) Trading 4.7% Higher – What’s Next?

SoundHound AI, Inc. (NASDAQ:SOUN)’s stock price traded up 4.7% on Wednesday . The company traded as high as $8.43 and last traded at $8.22. 34,777,763 shares traded hands during trading, an increase of 30% from the average session volume of 26,662,477 shares. The stock had previously closed at $7.85.

SoundHound AI News Roundup

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

• Positive Sentiment: SoundHound agreed to acquire LivePerson to combine voice agentic AI with LivePerson’s digital messaging and enterprise customer footprint; management says the combined company addresses a roughly $500M revenue opportunity and will create a large omnichannel conversational AI platform — a strategic scale and revenue-inflection move. Article Title
• Positive Sentiment: SoundHound updated FY2027 revenue guidance to $350M–$400M vs. consensus ~$279M, signaling material top-line acceleration and an accelerated path toward profitability (guidance was disclosed alongside the LivePerson deal). Article Title
• Positive Sentiment: DA Davidson reaffirmed a “buy” rating and set a $14 price target (about a ~70% upside from the recent price), providing institutional validation that may boost investor confidence and buying interest. Article Title
• Neutral Sentiment: Analysts and trade press are parsing the strategic rationale and execution risks of the LivePerson acquisition — pieces highlight potential upside from unified voice + messaging data and scale but also integration and margin execution challenges. Article Title
• Negative Sentiment: The stock experienced a notable session decline the prior trading day (reported close at $7.85, down ~5.6%), reflecting short-term volatility around the deal announcement and mixed market reaction; investors should expect swings as markets digest deal details and integration risk. Article Title

Wall Street Analyst Weigh In

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

SoundHound AI Stock Up 4.7%

The stock’s 50-day moving average price is $7.43 and its 200 day moving average price is $10.94. The firm has a market capitalization of $3.48 billion, a price-to-earnings ratio of -164.37 and a beta of 2.71.

SoundHound AI (NASDAQ:SOUN) last issued its earnings results on Thursday, February 26th. The company reported ($0.02) EPS for the quarter, meeting analysts’ consensus estimates of ($0.02). The business had revenue of $55.06 million during the quarter, compared to analysts’ expectations of $53.88 million. SoundHound AI had a negative net margin of 8.71% and a negative return on equity of 3.63%. The company’s quarterly revenue was up 59.4% compared to the same quarter last year. During the same period in the prior year, the business earned ($0.05) earnings per share. On average, sell-side analysts anticipate that SoundHound AI, Inc. will post -0.34 earnings per share for the current year.

Insiders Place Their Bets

In related news, CFO Nitesh Sharan sold 44,027 shares of the company’s stock in a transaction dated Friday, March 20th. The shares were sold at an average price of $6.79, for a total value of $298,943.33. Following the completion of the sale, the chief financial officer owned 1,661,121 shares of the company’s stock, valued at approximately $11,279,011.59. This represents a 2.58% decrease in their ownership of the stock. The sale was disclosed in a document filed with the SEC, which can be accessed through this link. Also, CEO Keyvan Mohajer sold 124,510 shares of the company’s stock in a transaction dated Friday, March 20th. The shares were sold at an average price of $6.79, for a total transaction of $845,422.90. Following the completion of the sale, the chief executive officer directly owned 2,073,777 shares of the company’s stock, valued at $14,080,945.83. This represents a 5.66% decrease in their position. Additional details regarding this sale are available in the official SEC disclosure. Over the last three months, insiders sold 307,973 shares of company stock valued at $2,091,110. Corporate insiders own 9.17% of the company’s stock.

Institutional Investors Weigh In On SoundHound AI

Hedge funds have recently modified their holdings of the company. Northwestern Mutual Wealth Management Co. grew its holdings in shares of SoundHound AI by 83.1% in 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 period. Dogwood Wealth Management LLC grew its holdings in shares of SoundHound AI by 152.1% in 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 period. Danske Bank A S purchased a new stake in shares of SoundHound AI in the third quarter valued at about $26,000. SHP Wealth Management purchased a new stake in shares of SoundHound AI in the fourth quarter valued at about $27,000. Finally, Financial Consulate Inc. purchased a new stake in shares of SoundHound AI in the third quarter valued at about $32,000. Hedge funds and other institutional investors own 19.28% of the company’s stock.

SoundHound AI Company Profile

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.