SoundHound AI (NASDAQ:SOUN) Trading Down 5.5% – What’s Next?

18 Mar 2026, 21:26 by Mitch Edgeman · The Markets Daily

Shares of SoundHound AI, Inc. (NASDAQ:SOUN – Get Free Report) fell 5.5% during mid-day trading on Wednesday . The stock traded as low as $7.37 and last traded at $7.39. 20,581,752 shares changed hands during trading, a decline of 25% from the average session volume of 27,337,957 shares. The stock had previously closed at $7.82.

Key Stories Impacting SoundHound AI

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

Positive Sentiment: Strategic partnership with ManpowerGroup’s Experis positions SoundHound to scale enterprise sales by embedding its conversational/agentic AI into Experis’ new Enterprise AI Services Suite — a distribution and services channel that could accelerate deployments and ARR growth. ManpowerGroup’s Experis and SoundHound AI Announce Strategic Partnership to Accelerate and Scale Enterprise AI Adoption
Positive Sentiment: Product milestone — SoundHound showcased an on-device, multimodal (voice+vision) agentic automotive platform at NVIDIA GTC, claiming a first-mover edge for private, low-latency in-car assistants; this strengthens SOUN’s TAM with auto OEMs and supports future licensing/edge-deployment revenue. SoundHound AI’s On Device Auto Platform Debut And What It Means For SOUN
Neutral Sentiment: Analyst and media pieces highlight strong revenue growth and the company’s automation use cases but note execution risks; coverage is mixed—acknowledging upside from enterprise adoption while flagging competition and margin pressure. SOUN’s AI-Driven Automation: The Future of Customer Service?
Negative Sentiment: Leadership risk — CFO Nitesh Sharan will leave on April 3 to join a quantum computing company. Sudden CFO turnover can spur short-term uncertainty around financial execution, IPO/spend discipline, and investor confidence until a successor is named. SoundHound AI Announces CFO Transition

Analyst Upgrades and Downgrades

A number of analysts recently issued reports on SOUN shares. Weiss Ratings reissued a “sell (d-)” rating on shares of SoundHound AI in a research report on Friday, January 9th. Piper Sandler reissued a “neutral” rating and issued a $9.00 price objective (down from $11.00) on shares of SoundHound AI in a report on Friday, February 27th. HC Wainwright lowered their target price on shares of SoundHound AI from $26.00 to $20.00 and set a “buy” rating on the stock in a research report on Monday, March 2nd. Zacks Research raised shares of SoundHound AI from a “strong sell” rating to a “hold” rating in a report on Monday, February 9th. Finally, Cantor Fitzgerald upgraded shares of SoundHound AI from a “neutral” rating to an “overweight” rating and increased their price target for the stock from $13.00 to $15.00 in a research note on Friday, December 12th. One investment analyst has rated the stock with a Strong Buy rating, five have assigned a Buy rating, three have assigned a Hold rating and one has issued a Sell rating to the stock. Based on data from MarketBeat.com, the company has an average rating of “Moderate Buy” and a consensus price target of $14.93.

Get Our Latest Research Report on SOUN

SoundHound AI Trading Down 5.5%

The company has a market capitalization of $3.10 billion, a PE ratio of -147.77 and a beta of 2.65. The firm has a 50 day simple moving average of $8.93 and a two-hundred day simple moving average of $12.44.

SoundHound AI (NASDAQ:SOUN – Get Free Report) last issued 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 return on equity of 3.63% and a negative net margin of 8.71%.The firm had revenue of $55.06 million during the quarter, compared to the consensus estimate of $53.88 million. During the same period last year, the company earned ($0.05) earnings per share. The company’s revenue for the quarter was up 59.4% on a year-over-year basis. Research analysts expect that SoundHound AI, Inc. will post -0.38 earnings per share for the current fiscal year.

Insiders Place Their Bets

In other news, COO Michael Zagorsek sold 73,406 shares of the business’s stock in a transaction dated Monday, December 22nd. The shares were sold at an average price of $11.28, for a total transaction of $828,019.68. Following the transaction, the chief operating officer directly owned 1,787,459 shares in the company, valued at $20,162,537.52. The trade was a 3.94% decrease in their ownership of the stock. The sale was disclosed in a legal filing with the SEC, which is available through this link. Also, CEO Keyvan Mohajer sold 144,326 shares of the stock in a transaction dated Monday, December 22nd. The stock was sold at an average price of $11.28, for a total transaction of $1,627,997.28. Following the transaction, the chief executive officer directly owned 2,198,287 shares of the company’s stock, valued at $24,796,677.36. This represents a 6.16% decrease in their ownership of the stock. Additional details regarding this sale are available in the official SEC disclosure. Over the last quarter, insiders have sold 460,922 shares of company stock valued at $5,199,073. Corporate insiders own 9.17% of the company’s stock.

Institutional Inflows and Outflows

A number of institutional investors and hedge funds have recently bought and sold shares of the business. Royal Bank of Canada boosted its position in shares of SoundHound AI by 71.3% during the 1st quarter. Royal Bank of Canada now owns 160,299 shares of the company’s stock worth $1,301,000 after purchasing an additional 66,714 shares in the last quarter. Integrated Wealth Concepts LLC lifted its stake in shares of SoundHound AI by 8.9% in the first quarter. Integrated Wealth Concepts LLC now owns 14,676 shares of the company’s stock valued at $119,000 after purchasing an additional 1,201 shares during the period. NewEdge Advisors LLC boosted its holdings in SoundHound AI by 12.9% during the first quarter. NewEdge Advisors LLC now owns 41,030 shares of the company’s stock worth $333,000 after buying an additional 4,692 shares in the last quarter. Goldman Sachs Group Inc. grew its position in SoundHound AI by 69.8% during the first quarter. Goldman Sachs Group Inc. now owns 2,639,689 shares of the company’s stock worth $21,434,000 after buying an additional 1,085,473 shares during the period. Finally, UBS AM A Distinct Business Unit of UBS Asset Management Americas LLC increased its holdings in SoundHound AI by 10.1% in the first quarter. UBS AM A Distinct Business Unit of UBS Asset Management Americas LLC now owns 692,170 shares of the company’s stock valued at $5,620,000 after buying an additional 63,398 shares in the last quarter. Institutional investors and hedge funds own 19.28% of the company’s stock.

About SoundHound AI

(Get Free Report)

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.