SoundHound AI (NASDAQ:SOUN) Shares Gap Down – Here’s What Happened

SoundHound AI, Inc. (NASDAQ:SOUN) shares gapped down prior to trading on Friday . The stock had previously closed at $9.63, but opened at $8.69. SoundHound AI shares last traded at $8.4960, with a volume of 13,190,773 shares changing hands.

Trending Headlines about SoundHound AI

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

• Positive Sentiment: Record revenue and strong top-line growth: Q1 revenue was $44.2M, up ~52% year-over-year and above estimates, showing continued demand growth in voice/agentic AI. SoundHound AI Reports Record Q1 Revenue
• Positive Sentiment: New product catalyst — OASYS platform launch: management unveiled OASYS, a self-learning agent platform that consolidates recent acquisitions and could expand enterprise monetization and gross dollar retention over time. SoundHound AI Launches OASYS
• Positive Sentiment: Acquisition-driven longer-term revenue upside — LivePerson deal and 2027 outlook: the planned LivePerson acquisition and company commentary outline FY2027 revenue of at least $350M–$400M, implying meaningful scale if execution holds. SoundHound outlines 2027 revenue after LivePerson
• Positive Sentiment: Analyst support: at least one shop upgraded the stock to a strong-buy, which may support interest from growth-focused investors. Analyst Upgrade Note
• Neutral Sentiment: Bullish analyst write-ups and buy?the?dip commentary circulated after the slide, arguing product cadence and M&A could justify higher multiples — useful for longer-term investors but contingent on execution. SA: Buying Opportunity
• Neutral Sentiment: Wall Street interest noted in media pieces; analyst commentary can amplify moves but does not change fundamentals immediately. Wall Street Bulls Look Optimistic
• Negative Sentiment: EPS miss and higher costs: Q1 EPS missed/was weaker than some estimates due to acquisition-related charges and vendor true-ups, raising near-term profitability concerns. Q1 Earnings Miss on Higher Costs
• Negative Sentiment: Guidance uncertainty and margin pressure: management issued a wide FY2026 revenue range ($225M–$260M) and noted margin impacts from acquisitions, which increased investor risk aversion and prompted the sell-off. Guidance and Market Reaction
• Negative Sentiment: Heavy near-term selling: the market reacted sharply (double-digit intraday decline reported) as investors weighed slower margin recovery against growth—short-term technical and sentiment pressures are material. Stock Down 13% Article

Analyst Ratings Changes

Several research firms have weighed in on SOUN. Piper Sandler reaffirmed a “neutral” rating and issued a $9.00 price target (down from $11.00) on shares of SoundHound AI in a research note on Friday, February 27th. Weiss Ratings reaffirmed a “sell (d-)” rating on shares of SoundHound AI in a research note on Friday, January 9th. HC Wainwright dropped their price target on SoundHound AI from $26.00 to $20.00 and set a “buy” rating on the stock in a research note on Monday, March 2nd. Zacks Research raised SoundHound AI from a “strong sell” rating to a “hold” rating in a research note on Monday, February 9th. Finally, DA Davidson reaffirmed a “buy” rating and set a $14.00 price target on shares of SoundHound AI in a research note on Wednesday, April 22nd. One equities research analyst has rated the stock with a Strong Buy rating, five have given 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 stock currently has a consensus rating of “Moderate Buy” and a consensus target price of $14.93.

SoundHound AI Price Performance

The firm has a market capitalization of $3.61 billion, a PE ratio of -170.67 and a beta of 2.58. The firm’s fifty day moving average is $7.57 and its two-hundred day moving average is $10.18.

SoundHound AI (NASDAQ:SOUN) last released its quarterly earnings results on Thursday, February 26th. The company reported ($0.02) earnings per share 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 business had revenue of $55.06 million for the quarter, compared to analysts’ expectations of $53.88 million. During the same period in the previous year, the company earned ($0.05) earnings per share. The firm’s revenue for the quarter was up 59.4% compared to the same quarter last year. As a group, equities research analysts predict that SoundHound AI, Inc. will post -0.36 EPS for the current fiscal year.

Insider Buying and Selling at SoundHound AI

In related news, CEO Keyvan Mohajer sold 124,510 shares of the business’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 transaction, the chief executive officer directly owned 2,073,777 shares in the company, valued at approximately $14,080,945.83. The trade was a 5.66% decrease in their ownership of the stock. The transaction was disclosed in a document filed with the Securities & Exchange Commission, which can be accessed through this link. Also, insider James Ming Hom sold 31,019 shares of the business’s stock in a transaction dated Friday, March 20th. The stock was sold at an average price of $6.79, for a total transaction of $210,619.01. Following the transaction, the insider owned 772,364 shares in the company, valued at approximately $5,244,351.56. This trade represents a 3.86% decrease in their ownership of the stock. The SEC filing for this sale provides additional information. Insiders sold 307,973 shares of company stock valued at $2,091,110 in the last quarter. 8.84% of the stock is owned by company insiders.

Institutional Inflows and Outflows

Several hedge funds and other institutional investors have recently added to or reduced their stakes in SOUN. Hollencrest Capital Management boosted its stake in SoundHound AI by 197.5% in the first quarter. Hollencrest Capital Management now owns 3,615 shares of the company’s stock valued at $25,000 after acquiring an additional 2,400 shares during the last quarter. Northwestern Mutual Wealth Management Co. grew its position in shares of SoundHound AI by 83.1% during the 2nd quarter. Northwestern Mutual Wealth Management Co. now owns 2,336 shares of the company’s stock valued at $25,000 after acquiring an additional 1,060 shares during the period. Dogwood Wealth Management LLC grew its position in shares of SoundHound AI by 152.1% during the 4th quarter. Dogwood Wealth Management LLC now owns 2,559 shares of the company’s stock valued at $26,000 after acquiring an additional 1,544 shares during the period. Danske Bank A S bought a new position in shares of SoundHound AI during the 3rd quarter valued at approximately $26,000. Finally, SHP Wealth Management bought a new position in shares of SoundHound AI during the 4th quarter valued at approximately $27,000. 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.