SoundHound AI (NASDAQ:SOUN) Trading Up 4.7% – Still a Buy?

SoundHound AI, Inc. (NASDAQ:SOUN)’s share price shot up 4.7% during mid-day trading on Friday . The company traded as high as $8.39 and last traded at $8.19. 28,694,290 shares were traded during mid-day trading, an increase of 7% from the average session volume of 26,766,766 shares. The stock had previously closed at $7.82.

Trending Headlines about SoundHound AI

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

• Positive Sentiment: LivePerson acquisition seen as transformational for omnichannel conversational AI; deal combines SoundHound’s voice/agentic AI with LivePerson’s messaging/chat footprint, which could materially expand addressable market and valuation upside. SoundHound AI Acquisition Of LivePerson Reshapes Omnichannel AI And Valuation
• Positive Sentiment: Wedbush and other sell‑side commentary view the ~ $43M LivePerson deal as strengthening SoundHound’s competitive position in AI customer engagement — a bullish signal from a key AI/tech analyst. SoundHound AI strengthens position with LivePerson acquisition, says Wedbush
• Positive Sentiment: DA Davidson reiterated a Buy rating, supporting investor confidence that Street analysts see upside from recent strategic moves and execution. DA Davidson Reiterates Buy Rating for SoundHound AI (NASDAQ:SOUN)
• Positive Sentiment: Casey’s expanded deployment across ~2,600 stores confirms commercial traction for SoundHound’s AI ordering agents and recurring revenue potential from large retail customers. Casey’s Expands Partnership with SoundHound AI
• Positive Sentiment: Analysts and coverage note the LivePerson deal could open a sizable revenue opportunity (some estimates cite up to ~$500M long‑term), bolstering the bull case for multiple expansion if integration succeeds. SoundHound vs. Cerence: Which Voice AI Stock Has Stronger Potential?
• Neutral Sentiment: Coverage pieces (e.g., The Motley Fool) flag the acquisition as potentially positive but caution it will take time for benefits to materialize — implying patience is required for the thesis to play out. Is SoundHound AI’s Latest Acquisition a Game Changer for the Stock?
• Neutral Sentiment: SoundHound will report Q1 results and host a webcast on May 7 — an event that could re‑rate the stock depending on revenue guidance and integration commentary. SoundHound AI To Report 2026 First Quarter Financial Results
• Negative Sentiment: High‑profile negative commentary — notably Jim Cramer’s “We cannot be in SoundHound” remark — injects short‑term sentiment pressure and can amplify volatility despite fundamental positives. Cramer’s lightning round: ‘We cannot be in SoundHound’
• Negative Sentiment: TheStreet and other outlets note nuances and risks around the LivePerson deal and execution — reminders that integration risk, margins and near‑term profitability remain concerns. Wedbush has blunt message for SoundHound AI stock investors

Wall Street Analyst Weigh In

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

SoundHound AI Stock Up 4.9%

The firm’s 50 day simple moving average is $7.44 and its 200-day simple moving average is $10.90. The company has a market capitalization of $3.47 billion, a PE ratio of -163.97 and a beta of 2.71.

SoundHound AI (NASDAQ:SOUN) last released its quarterly earnings data on Thursday, February 26th. The company reported ($0.02) earnings per share (EPS) for the quarter, hitting the consensus estimate of ($0.02). SoundHound AI had a negative net margin of 8.71% and a negative return on equity of 3.63%. 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 firm earned ($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, sell-side analysts anticipate that SoundHound AI, Inc. will post -0.34 EPS for the current fiscal year.

Insider Activity at SoundHound AI

In other SoundHound AI news, insider James Ming Hom sold 31,019 shares of the business’s stock in a transaction that occurred on Friday, March 20th. The shares were sold at an average price of $6.79, for a total transaction of $210,619.01. Following the completion of the sale, the insider directly owned 772,364 shares in the company, valued at $5,244,351.56. The trade was a 3.86% decrease in their ownership of the stock. The transaction was disclosed in a filing with the Securities & Exchange Commission, which is available through this hyperlink. Also, COO Michael Zagorsek sold 52,968 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 transaction of $359,652.72. Following the sale, the chief operating officer owned 1,734,491 shares of the company’s stock, valued at approximately $11,777,193.89. This represents a 2.96% decrease in their ownership of the stock. Additional details regarding this sale are available in the official SEC disclosure. Insiders sold 307,973 shares of company stock valued at $2,091,110 over the last quarter. Company insiders own 9.17% of the company’s stock.

Institutional Investors Weigh In On SoundHound AI

Institutional investors have recently bought and sold shares of the business. Northwestern Mutual Wealth Management Co. grew 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 worth $25,000 after buying an additional 1,060 shares during the period. Dogwood Wealth Management LLC grew 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 worth $26,000 after buying an additional 1,544 shares during the period. Danske Bank A S acquired a new position in shares of SoundHound AI during the third quarter worth $26,000. SHP Wealth Management purchased a new position in shares of SoundHound AI in the fourth quarter valued at $27,000. Finally, Financial Consulate Inc. purchased a new position in shares of SoundHound AI in the third quarter valued at $32,000. 19.28% of the stock is currently owned by hedge funds and other institutional investors.

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.