SoundHound AI (NASDAQ:SOUN) Trading 13.3% Higher – What’s Next?

SoundHound AI, Inc. (NASDAQ:SOUN)’s share price traded up 13.3% during trading on Friday . The company traded as high as $8.13 and last traded at $8.02. 64,824,488 shares traded hands during mid-day trading, an increase of 123% from the average daily volume of 29,018,973 shares. The stock had previously closed at $7.08.

Key Stories Impacting SoundHound AI

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

• Positive Sentiment: Record revenue and earnings beat: Second-quarter revenue rose 45% year over year to $61.9 million, well above the approximately $42.6 million consensus estimate. The adjusted loss of $0.02 per share also beat expectations, while profitability metrics and margins improved. SoundHound Q2 Earnings Beat on OASYS Demand, Revenues Top, Stock Up
• Positive Sentiment: Higher full-year outlook: SoundHound raised its 2026 revenue floor, citing OASYS-driven enterprise adoption, faster deal conversions and broader customer demand. Management also emphasized continued margin improvement despite ongoing investment. SOUN Raises 2026 Revenue Outlook After OASYS Drives Record Q2 Sales
• Positive Sentiment: Potential strategic catalyst: Proxy adviser Glass Lewis recommended that LivePerson stockholders vote in favor of the proposed transaction with SoundHound at the August 20 special meeting, supporting the planned expansion of SoundHound’s conversational-AI capabilities. Glass Lewis Recommends LivePerson Stockholders Vote For SoundHound AI Transaction
• Positive Sentiment: Trading momentum: Heavy call-option activity and high short interest may be amplifying the post-earnings move as bullish traders participate and short sellers cover positions.
• Neutral Sentiment: Analyst support is mixed: DA Davidson maintained a Buy rating while lowering its price target from $12 to $10. Piper Sandler cut its target from $8 to $7 and retained a Neutral rating.
• Negative Sentiment: Valuation and financial risks: Analysts note that SOUN remains expensive relative to sales, with projected 2026 growth needing to justify the premium. The company continues to report losses and cash burn, while potential dilution and execution risks could limit further upside. SOUN Dips 16.9% in 3 Months

Analysts Set New Price Targets

A number of brokerages have recently weighed in on SOUN. LADENBURG THALM/SH SH raised SoundHound AI to a “strong-buy” rating in a research report on Wednesday, May 6th. DA Davidson decreased their price target on shares of SoundHound AI from $12.00 to $10.00 and set a “buy” rating for the company in a research note on Thursday. Piper Sandler lowered their price objective on shares of SoundHound AI from $8.00 to $7.00 and set a “neutral” rating on the stock in a report on Thursday. Finally, Weiss Ratings reaffirmed a “sell (e+)” rating on shares of SoundHound AI in a research note on Monday, June 15th. One analyst has rated the stock with a Strong Buy rating, four have issued a Buy rating, three have given a Hold rating and one has issued a Sell rating to the company. According to data from MarketBeat, the stock presently has a consensus rating of “Moderate Buy” and an average target price of $14.00.

SoundHound AI Trading Up 13.3%

The stock has a market capitalization of $3.47 billion, a P/E ratio of -21.10 and a beta of 2.64. The business has a fifty day simple moving average of $6.79 and a 200 day simple moving average of $7.61.

SoundHound AI (NASDAQ:SOUN) last posted its earnings results on Tuesday, August 4th. The company reported ($0.10) earnings per share for the quarter, beating analysts’ consensus estimates of ($0.13) by $0.03. The company had revenue of $61.90 million for the quarter, compared to analyst estimates of $52.38 million. SoundHound AI had a negative return on equity of 31.06% and a negative net margin of 67.45%.The company’s revenue for the quarter was up 45.0% on a year-over-year basis. During the same quarter last year, the company earned ($0.19) earnings per share. As a group, research analysts forecast that SoundHound AI, Inc. will post -0.45 earnings per share for the current year.

Insider Buying and Selling at SoundHound AI

In other SoundHound AI news, CTO Timothy Stonehocker sold 18,802 shares of the firm’s stock in a transaction on Monday, June 15th. The stock was sold at an average price of $7.46, for a total transaction of $140,262.92. Following the transaction, the chief technology officer directly owned 502,290 shares in the company, valued at approximately $3,747,083.40. This trade represents a 3.61% decrease in their position. The sale was disclosed in a legal filing with the Securities & Exchange Commission, which is accessible through the SEC website. The sale was made to cover tax withholding obligations related to the vesting of equity awards. Also, COO Michael Zagorsek sold 64,994 shares of SoundHound AI stock in a transaction on Monday, June 15th. The stock was sold at an average price of $7.46, for a total transaction of $484,855.24. Following the transaction, the chief operating officer directly 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 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 268,022 shares of company stock worth $1,999,444. 8.84% of the stock is currently owned by insiders.

Institutional Inflows and Outflows

Several hedge funds and other institutional investors have recently added to or reduced their stakes in SOUN. Vanguard Group Inc. boosted its holdings in shares of SoundHound AI by 4.4% in 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 last quarter. Rakuten Securities Inc. grew its position in SoundHound AI by 877.9% during the fourth quarter. Rakuten Securities Inc. now owns 333,605 shares of the company’s stock valued at $3,326,000 after buying an additional 299,492 shares during the period. UBS Group AG increased its holdings in SoundHound AI by 77.6% during the fourth 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 last quarter. Mitsubishi UFJ Asset Management Co. Ltd. increased its holdings in SoundHound AI by 140.5% during the fourth quarter. Mitsubishi UFJ Asset Management Co. Ltd. now owns 266,576 shares of the company’s stock worth $2,826,000 after buying an additional 155,743 shares during the last quarter. Finally, Geode Capital Management LLC raised its position in SoundHound AI by 3.1% in the fourth quarter. Geode Capital Management LLC now owns 9,180,321 shares of the company’s stock worth $91,543,000 after acquiring an additional 273,097 shares during the period. 19.28% of the stock is currently owned by hedge funds and other institutional investors.

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.