SoundHound AI Stock Plummets Despite Strong Q2 Performance: Market Concerns and Future Outlook

SoundHound AI (SOUN) Stock Is Plummeting: What's Driving The Action? - SoundHound AI (NASDAQ:SOUN)

Shares of SoundHound AI Inc SOUN are trading lower during Tuesday's session, despite a lack of any new company-specific catalysts to explain the downturn. Here's what investors need to know. What To Know: The move follows a period of significant positive news for the voice AI and speech recognition company, which recently posted stellar second-quarter earnings results in early August. For its second quarter, SoundHound reported sales of $42.68 million, representing a 217% year-over-year increase and beating the consensus estimate of $32.88 million. The company also posted a smaller-than-expected adjusted loss of 3 cents per share, compared to the analyst consensus for a 9-cent loss. During the following earnings call, CEO Keyvan Mohajer called it the company's "all time strongest quarter" with growth across all key business segments. Buoyed by the strong performance, SoundHound raised its full-year 2025 revenue outlook to a range of $160 million to $178 million, ahead of the $159.54 million consensus estimate. The results prompted positive reactions from analysts. On August 11, Ladenburg Thalmann upgraded the stock from Neutral to Buy and increased its price target from $9 to $16. This followed an update from Wedbush on August 8, which maintained an Outperform rating and also raised its price target to $16. Given the recent strong fundamentals and positive outlook, Tuesday's price action may be linked to profit-taking amid a 17% move higher over the trailing month. Price Action: According to data from Benzinga Pro, SOUN shares are trading lower by 9.1% to $13.47 during Tuesday's session. The stock has a 52-week high of $24.98 and a 52-week low of $4.32. Read Also: Palo Alto Networks Stock Is Trading Higher Tuesday: What's Fueling The Momentum? How To Buy SOUN Stock By now you're likely curious about how to participate in the market for SoundHound AI - be it to purchase shares, or even attempt to bet against the company. Buying shares is typically done through a brokerage account. You can find a list of possible trading platforms here. Many will allow you to buy "fractional shares," which allows you to own portions of stock without buying an entire share. In the case of SoundHound AI, which is trading at $13.81 as of publishing time, $100 would buy you 7.24 shares of stock. If you're looking to bet against a company, the process is more complex. You'll need access to an options trading platform, or a broker who will allow you to "go short" a share of stock by lending you the shares to sell. The process of shorting a stock can be found at this resource. Otherwise, if your broker allows you to trade options, you can either buy a put option, or sell a call option at a strike price above where shares are currently trading - either way it allows you to profit off of the share price decline. Image: Shutterstock SOUNSoundHound AI Inc$13.37-9.78%Stock Score Locked: Edge Members Only Benzinga Rankings give you vital metrics on any stock - anytime. Unlock RankingsEdge RankingsMomentum96.58GrowthN/AQualityN/AValue5.60Price TrendShortMediumLongOverview This content was partially produced with the help of AI tools and was reviewed and published by Benzinga editors. Market News and Data brought to you by Benzinga APIs

SoundHound AI (SOUN) Stock Is Sliding: What's Going On? - SoundHound AI (NASDAQ:SOUN)

Shares of SoundHound AI Inc SOUN are falling again during Wednesday's trading session, likely due to overall weakness in tech stocks this week. What To Know: Wednesday's price action follows a record-breaking second quarter reported in early August, which CEO Keyvan Mohajer hailed as the company's "all time strongest quarter." SoundHound beat analyst expectations with revenues of $42.68 million, a notable 217% year-over-year increase that soared past the consensus estimate of $32.88 million. The voice AI specialist also demonstrated a clear path toward profitability, posting a smaller-than-expected adjusted loss of only 3 cents per share, compared to the anticipated 9 cent loss. Additonally, management raised its full-year 2025 revenue forecast to a range of $160 million to $178 million, signaling strong confidence in its growth trajectory. This impressive performance garnered bullish responses from Wall Street, with firms like Ladenburg Thalmann and Wedbush upgrading their ratings and raising their price targets to $16. After a 7% run-up over the last month, the stock is retreating Wednesday as investors potentially take profits amid wider market weakness. Price Action: According to data from Benzinga Pro, SOUN shares are trading lower by 6.43% to $12.44 Wednesday morning. The stock has a 52-week high of $24.98 and a 52-week low of $4.32. Read Also: Wall Street Braces For Tech Carnage: 'Disaster' QQQ Options Tell The Story How To Buy SOUN Stock Besides going to a brokerage platform to purchase a share - or fractional share - of stock, you can also gain access to shares either by buying an exchange traded fund (ETF) that holds the stock itself, or by allocating yourself to a strategy in your 401(k) that would seek to acquire shares in a mutual fund or other instrument. For example, in SoundHound AI's case, it is in the Information Technology sector. An ETF will likely hold shares in many liquid and large companies that help track that sector, allowing an investor to gain exposure to the trends within that segment. Image: Shutterstock SOUNSoundHound AI Inc$12.47-6.20%Stock Score Locked: Edge Members Only Benzinga Rankings give you vital metrics on any stock - anytime. Unlock RankingsEdge RankingsMomentum96.27GrowthN/AQualityN/AValue5.96Price TrendShortMediumLongOverview This content was partially produced with the help of AI tools and was reviewed and published by Benzinga editors. Market News and Data brought to you by Benzinga APIs

SoundHound AI Is Plummeting Today -- Is the Stock a Buy Right Now?

Inflationary concerns are back in focus, and SoundHound AI stock is being hit with big sell-offs. Amid significant bearish pressures facing the broader market, SoundHound AI (SOUN -9.99%) stock is suffering a big valuation decline in Tuesday's trading. The conversational artificial intelligence (AI) company's share price was down 10.5% as of 3:15 p.m. ET. At the same point in the day's trading, the S&P 500 had fallen 0.8%, and the Nasdaq Composite was down 1.6%. SoundHound AI stock is rapidly losing ground today after Home Depot said that it will be raising prices on some of the products it sells as a result of tariffs. While that might not seem to have any immediate connection to the AI specialist's business, it raises some significant questions about the broader picture for the U.S. economy and valuations across the stock market. Home Depot is the U.S.'s leading retailer in a category that is also directly adjacent to the broader real estate market, and investors and analysts often look to the company's business results and guidance as a broader macroeconomic indicator. With the company saying that it plans to raise prices, investors are worried that a recent acceleration for inflation among wholesalers is poised to trickle down to the consumer economy. If that winds up being the case, it could create a much tougher environment for growth-dependent tech stocks. Is SoundHound AI stock a buy right now? With SoundHound AI trading at roughly 30 times this year's expected earnings and still not posting profits, the company's valuation has a high level of sensitivity to unfavorable macroeconomic developments. After the Producer Price Index (PPI) report published by the Bureau of Labor Statistics (BLS) showed inflation at the wholesaler level that came in way above forecasts, Home Depot's announcement of pricing increases is intensifying fears that consumer-level inflation and overall inflation in the U.S. are poised for significant upticks that could cause the Federal Reserve to adopt a slower schedule for interest rate reductions. In general, I think that the recent reads on inflation pose substantial near-term risks to highly growth-dependent tech stocks and other speculative plays. Along those lines, SoundHound AI stock could face more big sell-offs if unfavorable inflationary indicators continue to mount. On the other hand, SoundHound AI has been posting very impressive sales growth momentum and appears to have a huge runway for long-term expansion. Given its strong sales expansion and category-leading tech offerings, I think the company stands out as a better buy than many other speculative AI plays -- and pullbacks could be worthwhile buying opportunities for risk-tolerant investors.