Shares of SoundHound AI (SOUN) have pulled back recently, catching the attention of investors. The decline comes amid broader tech volatility and a surge in insider stock sales. As the market digests these developments, investors are weighing whether SOUN presents a buying opportunity or signals caution ahead.
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After surging more than 1,000% in 2024, SOUN shares have pulled back about 20% year-to-date in 2025. Despite the retreat, the company’s growth remains strong. New acquisitions and recent partnerships could boost revenues. Meanwhile, a solid balance sheet makes SOUN appealing to growth-focused investors seeking opportunities.
What’s Happening with SOUN Stock?
SoundHound’s stock has been volatile in the last week. After climbing to around $18 on news of a new partnership, SOUN dropped over the next two days after filings revealed insiders sold shares.
SOUN stock is currently trading slightly over $15, closing at $15.68 on September 26, 2025. The stock reached its all-time high of $23.95 on December 27, 2024.
What Lies Ahead for SoundHound?
SoundHound is growing at an impressive pace, with first-half 2025 revenue nearly tripling year-over-year to $72 million. For the full year, the company raised its revenue forecast to between $160 million and $178 million, above its earlier estimate of $157 million to $177 million, signaling even stronger growth in the second half.
It’s no surprise that SoundHound expects to double its revenue this year. Notably, rising demand for voice and conversational AI solutions, including AI agents, smart answering systems, customer service assistants, and in-car voice assistants, supports the company’s confidence in its revenue growth.
Furthermore, SoundHound’s recent acquisition of Interactions, an AI-powered customer service company, strengthens its position in agentic AI and broadens its enterprise customer base. It’s also expected to add to profitability right away, with additional payments possible if revenue milestones are met.
Is SOUN Stock a Good Buy?
According to TipRanks, SOUN stock has received a Moderate Buy consensus rating, with five Buys and two Holds assigned in the last three months. The average SoundHound stock price target is $15.33, suggesting a potential downside of 3% from the current level.
