SoundHound AI, Inc. (SOUN) Stock Analysis
Range Bound setup
Technology · Software - Application
Sell if holding. Engine safety override at $8.37: Quality below floor (2.8 < 4.0) triggers a hard block regardless of the otherwise-positive setup — overall score 5.1/10 and A.R:R 3.2:1 is above the 1.5:1 BUY gate. Specifically: High short interest: 40%; Below-average business quality; Negative price momentum.
SoundHound AI provides voice AI and conversational intelligence platforms across automotive OEMs, IoT, restaurant, and enterprise customer service industries via royalty, subscription, and monetization revenue models. No single customer exceeded 10% of FY2025 revenue; the... Read more
Sell if holding. Engine safety override at $8.37: Quality below floor (2.8 < 4.0) triggers a hard block regardless of the otherwise-positive setup — overall score 5.1/10 and A.R:R 3.2:1 is above the 1.5:1 BUY gate. Specifically: High short interest: 40%; Below-average business quality; Negative price momentum. Chart setup: RSI 52 mid-range, Bollinger mid-band. Score 5.1/10, moderate confidence.
Passes 7/9 gates (favorable risk/reward ratio, clean insider activity, no SEC red flags, news events none recent, earnings proximity 82d clear, semi cycle peak clear, materials cycle peak clear). Fails on weak momentum and death cross (50MA < 200MA). Suitability: aggressive.
Recent Developments — SoundHound AI, Inc.
Latest news
- Axios Reported More Than 60 Trump Allies Urge President To Test And Approve Most Powerful AI Models Before Release — benzinga May 18, 2026 neutral
- SoundHound AI Files Shelf Prospectus For Offering Of Securities; No Terms Disclosed — benzinga May 11, 2026 neutral
- Nasdaq Tops 29,000 Records, Micron Soars 13%: Stock Market Today — benzinga May 8, 2026 neutral
- SoundHound Stock Pulls Back As Traders Assess Mixed Earnings Report — benzinga May 8, 2026 neutral
- Forward Air Posts Downbeat Q1 Results, Joins Upwork, HubSpot And Other Big Stocks Moving Lower In Friday's Pre-Market Se — benzinga May 8, 2026 negative
Generated 2026-05-20T21:06:21Z.
Thesis
Key Metrics
Quality Signals
Options Flow
Concentration Risks(10-K Item 1A)
- HIGHCustomertop-5 unbilled receivables customers83%10-K Item 1A: 'The unbilled receivables balances from five customers collectively totaled 83% of the Company's consolidated unbilled receivables balance at December 31, 2025.'
Material Events(8-K, last 90d)
- 2026-03-18Item 5.02MEDIUMCFO Nitesh Sharan resigning effective April 3, 2026 for a new role in quantum computing; no disagreement with issuer. James Hom (CPO, co-founder, Board member) appointed Interim CFO until a permanent successor is chosen.SEC filing →
Model-generated analysis — not investment advice. Not a registered investment advisor. Past performance does not guarantee future results. Full disclaimer
Rating Breakdown
4 floor-breakers·1 ceiling hit
Volatile — 7.9% daily ATR makes tight stops impractical. Position-size conservatively.static
Hyper-growth tech sacrificing current profitability for scale. Floor tripped because model treats negative margins uniformly; the growth dimension tells the other half of the story.static
No near-term catalyst priced in. Thesis progression will come from fundamentals grinding, not event reaction.static
Price action weak — below key moving averages, no momentum carry. Needs a base before trend-continuation setups apply.static
Price Targets
Position Sizing
Risk Alerts
Earnings
Verdict History
Frequently Asked Questions
Sell if holding. Engine safety override at $8.37: Quality below floor (2.8 < 4.0) triggers a hard block regardless of the otherwise-positive setup — overall score 5.1/10 and A.R:R 3.2:1 is above the 1.5:1 BUY gate. Specifically: High short interest: 40%; Below-average business quality; Negative price momentum. Chart setup: RSI 52 mid-range, Bollinger mid-band. Prior stop was $7.82. Score 5.1/10, moderate confidence.
Take-profit target: $12.40 (+47.4% upside). Prior stop was $7.82. Stop-loss: $7.82.
Concentration risk — Customer: top-5 unbilled receivables customers (83.0%); Quality below floor (2.8 < 4.0).
SoundHound AI, Inc. trades at a P/E of N/A (forward -70.1). TrendMatrix value score: 5.4/10. Verdict: Sell.
15 analysts cover SOUN with a consensus score of 4.1/5. Average price target: $14.
What does SoundHound AI, Inc. do?SoundHound AI provides voice AI and conversational intelligence platforms across automotive OEMs, IoT, restaurant, and...
SoundHound AI provides voice AI and conversational intelligence platforms across automotive OEMs, IoT, restaurant, and enterprise customer service industries via royalty, subscription, and monetization revenue models. No single customer exceeded 10% of FY2025 revenue; the company is integrating acquisitions including Amelia (agentic AI platform) and SYNQ3.