SoundHound AI (NASDAQ:SOUN) Shares Gap Up – Here’s Why

Shares of SoundHound AI, Inc. (NASDAQ:SOUN) gapped up prior to trading on Thursday . The stock had previously closed at $6.43, but opened at $8.05. SoundHound AI shares last traded at $7.2060, with a volume of 26,492,371 shares.

SoundHound AI News Summary

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

• Positive Sentiment: Revenue reached a record $61.9 million, up 45% year over year and well above analyst estimates near $52–$53 million. Gross profit increased 67.6% to $27.9 million, indicating improving operating leverage as demand grows for SoundHound’s voice and agentic AI platform. SoundHound AI Reports Record Q2 and All-Time High Revenue
• Positive Sentiment: The company exceeded earnings expectations: GAAP loss was $0.10 per share versus the $0.13 consensus, while adjusted results were also better than expected. Management cited OASYS and enterprise adoption as key growth drivers. SoundHound AI Reports Bullish Q2
• Positive Sentiment: SoundHound raised its full-year 2026 revenue outlook to $230 million–$260 million, with the midpoint above the roughly $232.5 million analyst forecast. The stronger outlook helped support the bullish reaction. SoundHound AI Second-Quarter Revenue Rises
• Neutral Sentiment: The company continues pursuing its LivePerson acquisition, while LivePerson is promoting the transaction ahead of its investor town hall. The deal could broaden SoundHound’s conversational AI capabilities, but approval and execution remain unresolved. SoundHound AI Pushes LivePerson Deal
• Negative Sentiment: Despite better-than-expected revenue, SoundHound remained unprofitable, reporting a $42.8 million net loss, a $43.3 million operating loss and $33.7 million of operating cash outflow. The company ended the quarter with $215.6 million in cash. SoundHound AI Stock Rises on Q2 Earnings
• Negative Sentiment: Short interest reportedly represents about 42% of the float, creating volatility and the potential for sharp swings in either direction. Separately, reported insider activity over the past six months consisted of sales rather than purchases, which may weigh on investor confidence. SoundHound AI Leads Most Shorted Stocks

Analysts Set New Price Targets

Several brokerages recently issued reports on SOUN. LADENBURG THALM/SH SH upgraded shares of SoundHound AI to a “strong-buy” rating in a research report on Wednesday, May 6th. DA Davidson restated a “buy” rating and set a $14.00 price target on shares of SoundHound AI in a research report on Wednesday, April 22nd. Finally, Weiss Ratings reaffirmed a “sell (e+)” rating on shares of SoundHound AI in a research note on Monday, June 15th. One equities research analyst has rated the stock with a Strong Buy rating, five have issued a Buy rating, three have issued a Hold rating and one has given a Sell rating to the company’s stock. According to MarketBeat, the company presently has an average rating of “Moderate Buy” and a consensus price target of $14.93.

SoundHound AI Trading Up 13.0%

The stock has a 50 day simple moving average of $6.84 and a 200 day simple moving average of $7.63. The firm has a market capitalization of $3.15 billion, a PE ratio of -15.46 and a beta of 2.64.

SoundHound AI (NASDAQ:SOUN) last released its quarterly earnings data on Thursday, May 7th. The company reported ($0.06) earnings per share for the quarter, missing analysts’ consensus estimates of ($0.05) by ($0.01). SoundHound AI had a negative net margin of 91.84% and a negative return on equity of 40.15%. The company had revenue of $44.20 million for the quarter, compared to analysts’ expectations of $42.56 million. During the same period last year, the company posted ($0.06) EPS. The business’s revenue for the quarter was up 51.7% compared to the same quarter last year. As a group, equities analysts anticipate that SoundHound AI, Inc. will post -0.45 earnings per share for the current year.

Insider Buying and Selling

In other SoundHound AI news, insider James Ming Hom sold 28,843 shares of the firm’s stock in a transaction on Monday, June 15th. The shares were sold at an average price of $7.46, for a total value of $215,168.78. Following the sale, the insider owned 743,521 shares of the company’s stock, valued at $5,546,666.66. This trade represents a 3.73% decrease in their position. The sale was disclosed in a legal filing with the Securities & Exchange Commission, which is available at 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 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 $484,855.24. Following the completion of the sale, the chief operating officer directly owned 1,669,497 shares in the company, valued at approximately $12,454,447.62. This trade represents a 3.75% decrease in their position. The disclosure for this sale is available in the SEC filing. The sale was made to cover tax withholding obligations related to the vesting of equity awards. Insiders sold 268,022 shares of company stock valued at $1,999,444 over the last quarter. Company insiders own 8.84% of the company’s stock.

Institutional Trading of SoundHound AI

Institutional investors have recently modified their holdings of the company. Danske Bank A S purchased a new stake in shares of SoundHound AI during the third quarter worth about $26,000. Northwestern Mutual Wealth Management Co. increased its holdings in 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 purchasing an additional 1,060 shares during the period. Dogwood Wealth Management LLC raised its position in 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 purchasing an additional 1,544 shares during the last quarter. SHP Wealth Management bought a new position in SoundHound AI during the 4th quarter valued at approximately $27,000. Finally, Parallel Advisors LLC lifted its holdings in SoundHound AI by 42.8% in the 3rd quarter. Parallel Advisors LLC now owns 3,204 shares of the company’s stock worth $52,000 after buying an additional 960 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.