SoundHound AI (NASDAQ:SOUN) Raised to “Sell” at Wall Street Zen

SoundHound AI (NASDAQ:SOUN) was upgraded by stock analysts at Wall Street Zen from a “strong sell” rating to a “sell” rating in a research note issued to investors on Sunday, Wall Street Zen reports.

Other equities analysts have also issued reports about the stock. Piper Sandler reduced 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, August 6th. DA Davidson reduced their target price on shares of SoundHound AI from $12.00 to $10.00 and set a “buy” rating for the company in a report on Thursday, August 6th. Finally, Weiss Ratings restated a “sell (e+)” rating on shares of SoundHound AI in a research report on Monday, June 15th. One equities research analyst has rated the stock with a Strong Buy rating, three have assigned a Buy rating, two have issued a Hold rating and one has given a Sell rating to the company. According to data from MarketBeat.com, SoundHound AI has a consensus rating of “Moderate Buy” and a consensus target price of $13.00.

SoundHound AI Price Performance

Shares of SOUN stock opened at $6.47 on Friday. The business has a fifty day moving average of $6.73 and a 200 day moving average of $7.28. SoundHound AI has a 1 year low of $5.65 and a 1 year high of $22.17. The firm has a market capitalization of $2.87 billion, a price-to-earnings ratio of -17.03 and a beta of 2.66.

SoundHound AI (NASDAQ:SOUN) last posted its quarterly 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 return on equity of 30.22% and a negative net margin of 67.45%.The business had revenue of $61.90 million for the quarter, compared to the consensus estimate of $52.38 million. During the same quarter in the previous year, the business earned ($0.19) EPS. The company’s quarterly revenue was up 45.0% compared to the same quarter last year. As a group, equities research analysts expect that SoundHound AI will post -0.33 earnings per share for the current year.

Hedge Funds Weigh In On SoundHound AI

Several institutional investors have recently made changes to their positions in the company. Prospera Financial Services Inc increased its stake in shares of SoundHound AI by 5.9% during the fourth quarter. Prospera Financial Services Inc now owns 30,690 shares of the company’s stock worth $306,000 after purchasing an additional 1,699 shares in the last quarter. Hilltop Holdings Inc. raised its position in shares of SoundHound AI by 3.5% during the 1st quarter. Hilltop Holdings Inc. now owns 51,358 shares of the company’s stock worth $353,000 after purchasing an additional 1,753 shares during the last quarter. Sterling Investment Counsel LLC lifted its stake in SoundHound AI by 10.5% in the 1st quarter. Sterling Investment Counsel LLC now owns 22,787 shares of the company’s stock valued at $157,000 after buying an additional 2,173 shares in the last quarter. Empowered Funds LLC boosted its holdings in SoundHound AI by 19.6% in the 1st quarter. Empowered Funds LLC now owns 13,896 shares of the company’s stock worth $95,000 after buying an additional 2,277 shares during the last quarter. Finally, Hollencrest Capital Management boosted its holdings in SoundHound AI by 197.5% in the 1st quarter. Hollencrest Capital Management now owns 3,615 shares of the company’s stock worth $25,000 after buying an additional 2,400 shares during the last quarter. 19.28% of the stock is owned by hedge funds and other institutional investors.

Key Headlines Impacting SoundHound AI

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

• Positive Sentiment: SoundHound is participating in a sector-wide rally involving AI software names such as C3.ai and UiPath. The move followed renewed debate among leading AI researchers and appears to reflect improved sentiment toward enterprise AI stocks rather than a company-specific announcement. C3.ai, UiPath and SoundHound AI rally
• Positive Sentiment: SoundHound is identified as a potential short-squeeze candidate. High short interest can amplify gains if favorable news prompts bearish investors to cover positions, but this is a technical and speculative catalyst rather than evidence of improving fundamentals. Stocks identified as squeeze candidates
• Neutral Sentiment: SoundHound is attracting increased attention from Zacks users, but the coverage does not identify a new earnings, contract, or guidance catalyst. The heightened visibility could increase trading activity without changing the company’s outlook. SoundHound AI investor attention
• Negative Sentiment: Kahn Swick & Foti has initiated an investigation into SoundHound’s officers and directors, reportedly focusing on issues related to the company’s acquisitions of SYNQ3 and Amelia. The announcement could increase legal, governance, and reputational risks, though it does not establish wrongdoing. SoundHound AI investigation
• Negative Sentiment: Analysts and investors remain concerned that SoundHound’s rapid reported growth may rely heavily on acquisitions rather than internally generated expansion. The company needs to demonstrate sustainable organic growth and operating improvement. SoundHound AI’s biggest problem
• Negative Sentiment: Wall Street Zen downgraded SoundHound to “Sell,” adding to the cautious view of a company that remains unprofitable. Its latest quarterly results did beat estimates, with revenue up 45% year over year, but losses and valuation remain important risks. Wall Street Zen downgrades SoundHound AI

About SoundHound AI

SoundHound AI, Inc develops conversational artificial intelligence and voice-enabled technologies. Its platform is designed to let users interact with devices, applications and services through natural-language speech, supporting functions such as information retrieval, question answering and task completion.

The company’s offerings include the Houndify conversational AI platform, which businesses can use to build branded voice assistants, as well as SoundHound Chat AI, an in-car and consumer-oriented voice assistant that combines conversational capabilities with access to information and services.