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?
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.
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This content was partially produced with the help of AI tools and was reviewed and published by Benzinga editors.