SoundHound AI (NASDAQ:SOUN) trading down 1.2% - time to Sell? August 5, 2026 Key points. * SoundHound AI posted strong Q2 growth: Revenue rose 45% year over year to $61.9 million, beating expectations, while gross profit increased 67.6%. Management also issued fiscal 2026 revenue guidance of $230 million to $260 million. * Profitability remains a major concern: The company reported a $42.8 million net loss, a $43.3 million operating loss, negative EPS of $0.10 and $33.7 million in operating cash usage. * Investor sentiment is mixed: Shares fell 1.2% to $6.43, below both their 50-day and 200-day moving averages. Although the analyst consensus is "Moderate Buy" with a $14.93 price target, repeated insider selling and the proposed LivePerson acquisition add near-term risks. * MarketBeat previews the top five stocks to own by September 1st. SoundHound AI, Inc. (NASDAQ:SOUN - Get Free Report) shares traded down 1.2% during mid-day trading on Wednesday. The company traded as low as $6.37 and last traded at $6.43. Approximately 27,222,258 shares changed hands during trading, a decline of 4% from the average session volume of 28,267,834 shares. The stock had previously closed at $6.51. Here are the key news stories impacting SoundHound AI this week: * Positive Sentiment: SoundHound reported Q2 2026 revenue of $61.9 million, up 45% year over year and well above the $53.4 million consensus estimate. Gross profit increased 67.6% to $27.9 million, indicating stronger growth and improving margins. SoundHound AI Reports Record Q2 Revenue * Positive Sentiment: The company issued fiscal 2026 revenue guidance of $230 million to $260 million, above the $232.5 million analyst consensus at the midpoint. Management cited adoption of its OASYS platform and expanding enterprise AI demand, supporting the bullish reaction. SoundHound AI Q2 2026 Earnings * Positive Sentiment: MUSC Health expanded SoundHound's Emily voice agent across additional retail and specialty pharmacy lines, providing another example of deployment within an Epic-based healthcare environment. SoundHound AI MUSC Health Expansion * Neutral Sentiment: LivePerson is encouraging shareholders to approve its proposed acquisition by SoundHound. An investor town hall is expected to address the deal's financial, operational and contingency plans, making shareholder approval and integration execution important near-term factors. SoundHound AI LivePerson Deal * Negative Sentiment: Despite the revenue beat, SoundHound remained unprofitable: operating loss widened to $43.3 million, net loss was $42.8 million, and diluted EPS of negative $0.10 missed the estimate of negative $0.0569. Operating cash usage totaled $33.7 million. * Negative Sentiment: Insiders reported 12 open-market sales and no purchases during the past six months, including sizable sales by the CEO and other senior executives. This may weigh on investor confidence, particularly while the company continues to post substantial losses. SoundHound AI Insider Trading Activity Analyst upgrades and downgrades. Several research analysts recently weighed in on the stock. Weiss Ratings restated a "sell (e+)" rating on shares of SoundHound AI in a report on Monday, June 15th. LADENBURG THALM/SH SH upgraded shares of SoundHound AI to a "strong-buy" rating in a research note on Wednesday, May 6th. Finally, DA Davidson reissued a "buy" rating and set a $14.00 target price on shares of SoundHound AI in a research report on Wednesday, April 22nd. One analyst has rated the stock with a Strong Buy rating, five have issued a Buy rating, three have assigned a Hold rating and one has assigned a Sell rating to the company's stock. According to MarketBeat.com, the company has a consensus rating of "Moderate Buy" and an average price target of $14.93. Discover more Stock Screener Tool ETF Screener Tool Options Profit Calculator SoundHound AI trading down 1.2%. The stock's 50-day moving average price is $6.87 and its two-hundred day moving average price is $7.66. The stock has a market capitalization of $2.78 billion, a P/E ratio of -13.68 and a beta of 2.64. SoundHound AI (NASDAQ:SOUN - Get Free Report) last announced its quarterly earnings data on Thursday, May 7th. The company reported ($0.06) earnings per share for the quarter, missing the consensus estimate of ($0.05) by ($0.01). The firm had revenue of $44.20 million for the quarter, compared to the consensus estimate of $42.56 million. SoundHound AI had a negative net margin of 91.84% and a negative return on equity of 40.15%. SoundHound AI's revenue for the quarter was up 51.7% on a year-over-year basis. During the same period last year, the company posted ($0.06) earnings per share. On average, equities research analysts predict that SoundHound AI, Inc. will post -0.45 earnings per share for the current year. Insider buying and selling. In related news, insider James Ming Hom sold 28,843 shares of the company's stock in a transaction that occurred on Monday, June 15th. The shares were sold at an average price of $7.46, for a total transaction of $215,168.78. Following the sale, the insider directly owned 743,521 shares in the company, valued at approximately $5,546,666.66. This represents a 3.73% decrease in their position. The sale was disclosed in a filing with the SEC, which can be accessed through this hyperlink. The sale was made to cover tax withholding obligations related to the vesting of equity awards. Also, SVP Majid Emami sold 28,843 shares of SoundHound AI stock in a transaction that occurred on Monday, June 15th. The shares were sold at an average price of $7.46, for a total transaction of $215,168.78. Following the completion of the transaction, the senior vice president owned 472,983 shares of the company's stock, valued at $3,528,453.18. This represents a 5.75% decrease in their ownership of the stock. 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. Over the last quarter, insiders have sold 268,022 shares of company stock valued at $1,999,444. Corporate insiders own 8.84% of the company's stock. Institutional investors weigh in on SoundHound AI. Several hedge funds and other institutional investors have recently modified their holdings of the stock. Vanguard Group Inc. increased its holdings in SoundHound AI by 4.4% during the 4th quarter. Vanguard Group Inc. now owns 45,367,437 shares of the company's stock worth $452,313,000 after acquiring an additional 1,909,868 shares during the period. Rakuten Securities Inc. lifted its stake in SoundHound AI by 877.9% in the 4th quarter. Rakuten Securities Inc. now owns 333,605 shares of the company's stock worth $3,326,000 after purchasing an additional 299,492 shares in the last quarter. UBS Group AG boosted its holdings in SoundHound AI by 77.6% in the 4th quarter. UBS Group AG now owns 6,124,283 shares of the company's stock valued at $61,059,000 after purchasing an additional 2,676,707 shares during the period. Mitsubishi UFJ Asset Management Co. Ltd. grew its position in shares of SoundHound AI by 140.5% during the 4th quarter. Mitsubishi UFJ Asset Management Co. Ltd. now owns 266,576 shares of the company's stock valued at $2,826,000 after purchasing an additional 155,743 shares in the last quarter. Finally, Geode Capital Management LLC grew its position in shares of SoundHound AI by 3.1% during the 4th quarter. Geode Capital Management LLC now owns 9,180,321 shares of the company's stock valued at $91,543,000 after purchasing an additional 273,097 shares in the last quarter. 19.28% of the stock is currently owned by institutional investors. SoundHound AI company profile. 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. This instant news alert was generated by narrative science technology and financial data from MarketBeat in order to provide readers with the fastest reporting and unbiased coverage. Please send any questions or comments about this story to [email protected]. Continue following MarketBeat Before you consider SoundHound AI, you'll want to hear this. MarketBeat keeps track of Wall Street's top-rated and best performing research analysts and the stocks they recommend to their clients on a daily basis. MarketBeat has identified the five stocks that top analysts are quietly whispering to their clients to buy now before the broader market catches on... and SoundHound AI wasn't on the list. 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SOUN stock slides as traders eye key support. TIM BOHEN - UPDATED JUL. 29, 2026, 4:47 PM ET SoundHound AI Inc. stocks have been trading down by -7.69 percent amid heightened market concern over its AI valuation and growth prospects. Key takeaways. * Price action in SOUN shows a steady pullback from early-July highs near $7 toward the mid-$5 range, putting key support levels in play for active traders. * Recent intraday trading in SoundHound AI Inc. has been tight and choppy, signaling consolidation after a clear downtrend and hinting at an upcoming volatility spike. * Financials show SOUN with strong revenue growth but deep losses and negative cash flow, a classic high-risk, high-reward AI momentum profile. * The balance sheet gives SoundHound AI Inc. ample liquidity and low debt, but traders still need to respect dilution and cash-burn risk in this AI name. Live Update At 16:46:53 EDT: On Wednesday, July 29, 2026 SoundHound AI Inc. stock [NASDAQ: SOUN] is trending down by -7.69%! Discover the key drivers behind this movement as well as its expert analysis in the detailed breakdown below. Quick financial overview. SOUN is a textbook high-growth, high-burn AI story. On the top line, SoundHound AI Inc. generated about $168.9M in annual revenue, with revenue growing more than 70% over three years. That kind of growth usually attracts momentum trading, and SOUN has seen exactly that. Under the hood, though, the losses are heavy. For the latest reported quarter ending 2026/03/31, SoundHound AI Inc. pulled in $44.2M in revenue but posted a net loss of roughly $25M. Operating cash flow for the period was about -$26.3M, and free cash flow was roughly -$29.3M. SOUN is clearly spending hard to build out its platform. Margins tell the same story. SOUN's gross margin sits near 40%, which is decent for software-like AI services, but profit margins are deeply negative across the board. Return on equity and return on assets for SoundHound AI Inc. are strongly negative, signaling the business is far from breakeven. The balance sheet offers some comfort. SOUN holds around $215.6M in cash and has very low long-term debt (roughly $3.2M), plus a current ratio near 3.9. That gives SoundHound AI Inc. runway, but traders still need to track cash burn and potential future equity raises. Why traders are watching SOUN price action. SOUN has been quietly leaking lower through July, and that's exactly when serious traders start paying attention. From a high close around $6.96 on 26/07/06, SoundHound AI Inc. has worked its way down to a recent close near $5.70 on 26/07/29. That's a controlled downtrend, not a crash, but it shows momentum has shifted. Look at the daily chart: SOUN spent early July grinding in the upper-$6s, briefly pushing toward $7, then failing to hold. Each bounce has been sold a little lower - $6.90s, then $6.70s, then $6.40s - until SoundHound AI Inc. slipped into the low-$6s and finally into the $5s. That stair-step pattern typically signals profit-taking and fading enthusiasm. The intraday five-minute chart backs this up. Early in the latest session, SOUN opened just above $6.20 and slowly bled lower through the day. There were small pushes into the upper-$5.90s, but every attempt higher was sold into. By the close, SoundHound AI Inc. sat in the mid-$5.70s, with volume and range compressing. That's classic consolidation after a trend. For short-term trading, that tightening range is important. When SOUN trades in a narrow band around $5.70-$5.90 after a multi-day slide from near $7, it often sets up for a stronger move next - either a sharp bounce or a flush through support. Traders who know SoundHound AI Inc. understand this name can move fast once volume returns. The job now is mapping levels, staying patient, and waiting for the next surge in range and volume. Conclusion. SOUN sits at an interesting crossroads. On one side, you have real growth: SoundHound AI Inc. is scaling revenue quickly, with a software-style gross margin that supports the long-term AI story. The cash balance is solid, debt is low, and liquidity gives the company room to keep building. On the other side, the losses and cash burn are huge, and the valuation metrics on SOUN remain rich relative to current sales. For traders, that tension creates opportunity. When expectations are high and a stock like SoundHound AI Inc. pulls back from recent highs, you often see emotional trading around support levels. Breakdowns can be sharp. So can short squeezes and snap-back rallies. The recent drift from $6.90s down to the $5 handle, along with the tight intraday consolidation, tells me SOUN is coiling for its next notable move. The key is to treat SOUN as a trading vehicle, not a hope-and-hold story. Respect the volatility, plan your levels, and manage risk like a pro. As Tim Sykes likes to say, "The patterns repeat, but you have to be prepared." Equally important, as Tim Bohen, lead trainer with StocksToTrade says, "If you're still guessing at the end of your analysis, it's probably not a trade worth taking." Traders who stay disciplined, cut losses quickly, and let the chart of SoundHound AI Inc. do the talking will be in the best position to learn from - and potentially capitalize on - whatever comes next. This is stock news, not investment advice. StocksToTrade News delivers real-time stock market updates tailored to highlight the key catalysts driving short-term price movements. Its coverage is designed for active traders and investors who thrive in fast-moving markets, with a focus on volatile sectors like penny stocks, AI stocks, Robinhood stocks and other momentum plays. 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SoundHound AI shares have fallen 35% in 2025 as investors grow increasingly bearish despite the company's significant growth in the voice artificial intelligence market. The tech stock has declined sharply after both earnings reports this year, even after posting 52% revenue growth in the first quarter. While SoundHound has expanded through acquisitions, its adjusted loss widened to $26.6 million last quarter from $22.3 million a year earlier. Gross margins also deteriorated from 35.5% to 31.1%. The company reports its latest quarterly results on 5 August. Although the stock trades above its 52-week low of $5.83, analysts suggest further declines are possible if it fails to demonstrate progress towards profitability. Revenue growth alone hasn't been sufficient to lift the stock following previous earnings announcements.