SoundHound AI (SOUN) Stock Rises 3% While Tech Sells Off on Iran Tensions

TLDR

• SoundHound AI (SOUN) rose roughly 3% to $8.32 on Monday, bucking a broader tech selloff.
• The move came despite a risk-off session driven by rising U.S.-Iran geopolitical tensions after Trump announced the seizure of an Iranian cargo ship.
• SOUN reported quarterly revenue of $55.06M, up 59.4% year-over-year, with EPS of -$0.02, meeting estimates.
• Insiders have been net sellers over the past 90 days, offloading 307,973 shares worth roughly $2.09 million.
• Analyst consensus sits at Moderate Buy with an average price target of $14.93, more than 75% above Monday’s closing price.

SoundHound AI (SOUN) gained close to 3% on Monday, closing at $8.32, even as the broader tech sector sold off. That’s not a small thing — holding ground while the market retreats often draws attention from investors looking for relative strength.

SoundHound AI, Inc., SOUN

The stock opened from a prior close of $8.08 and reached an intraday high of $8.35. Volume came in at around 25.1 million shares, slightly below the 30-day average of 26.2 million.

The gains came on a rough day for markets. Over the weekend, President Trump announced that the U.S. had seized an Iranian cargo ship in the Gulf of Oman after Iran declined to join U.S.-led peace talks planned in Pakistan. Trump also warned of potential strikes on Iranian infrastructure. A temporary U.S.-Iran ceasefire is set to expire this week, keeping tension elevated.

Despite the backdrop, SOUN held its ground. The stock is still down about 16.5% year-to-date, but Monday’s session offered a break from recent pressure.

Recent Earnings and Revenue Growth

SOUN’s last quarterly report, released on February 26, showed revenue of $55.06 million — beating analyst estimates of $53.88 million. That figure was up 59.4% from the same period a year earlier. EPS came in at -$0.02, exactly in line with consensus.

For full-year 2024, the company posted record annual revenue of $169 million, nearly double the $84.7 million it brought in the year before.

Still, the stock hasn’t been rewarded for that growth. Investors have remained cautious, citing continued losses, increasing competition in the voice AI space, and questions about whether the company can keep up its growth rate.

The company’s 50-day moving average sits at $7.44. Its 200-day moving average is $11.08, well above where the stock trades today.

Insider Selling and Analyst Targets

One headwind has been insider activity. Over the past 90 days, insiders sold a total of 307,973 shares worth about $2.09 million. COO Michael Zagorsek sold 52,968 shares in late March at an average price of $6.79. Director James Ming Hom sold 31,019 shares in the same transaction window, also at $6.79.

Insiders currently own 9.17% of the stock. Institutional ownership stands at around 19.3%, with several funds increasing their positions in recent quarters.

The CFO departure also added pressure. Nitesh Sharan announced in March that he would leave in April to join a quantum computing firm.

On the analyst side, views are mixed but lean positive. HC Wainwright cut its price target from $26 to $20 but kept a Buy rating. Piper Sandler lowered its target to $9 with a Neutral rating. DA Davidson set a $14 target. Zacks upgraded SOUN from Strong Sell to Hold in February.

The consensus across MarketBeat data sits at Moderate Buy with an average target of $14.93. TipRanks data shows a Strong Buy consensus based on recent ratings, with an average target of $14.50 — implying upside of around 74% from Monday’s close.

The company carries a market cap of $3.52 billion and a beta of 2.71, reflecting the stock’s tendency to move sharply relative to the broader market.

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