SoundHound AI, Inc. (SOUN) Stock Analysis

Q: What is the SOUN stock price target?

Take-profit $12.72 (+61.5% upside). Prior stop was $7.32.

Q: What are the risks of investing in SOUN?

Concentration risk — Customer: top-5 customers unbilled receivables (83.0%); Concentration risk — Customer: automotive industry customers; Quality below floor (2.5 < 4.0); Quality below floor (2.5 < 4.0); Momentum score 3.6/10 — below 4.5 minimum.

Q: Is SOUN overvalued or undervalued?

SoundHound AI, Inc. trades at a P/E of N/A (forward -771.0). TrendMatrix value score: 5.4/10. Overall verdict: Sell.

Q: What do analysts say about SOUN?

15 analysts cover SOUN with a consensus score of 4.1/5. Average price target: $15.

Recovery setup

SellVALUE-TRAP 1/5Moderate ConfidenceUpdated 2026-04-30

Technology · Software - Application

Earnings in 7 days (2026-05-07). Expect elevated volatility around the report — consider waiting for post-earnings price action before new entries.

Sell if holding. Engine safety override at $7.88: a dimension score below its floor triggers a hard block regardless of the otherwise-positive setup — overall score 5.2/10 and A.R:R 4.1:1 is above the 1.5:1 BUY gate. Specifically: High short interest: 38%; Elevated put/call ratio: 1.45; Below-average business quality.

SoundHound AI provides independent Voice AI and conversational intelligence solutions for businesses across automotive, TV, IoT, and customer service industries via its Houndify platform and products like Smart Answering and Smart Ordering. Revenue from licensing, hosting fees,... Read more

$7.88+61.5% A.UpsideScore 5.2/10#77 of 96 Software - Application

Stop $7.32Target $12.72(analyst − 13%)A.R:R 4.1:1

Analyst target$14.63+85.6%8 analysts

$12.72our TP

$7.88price

$14.63mean

$20

Passes 5/8 gates (favorable risk/reward ratio, clean insider activity, no SEC red flags, news events none recent, semi cycle peak clear). Fails on weak momentum and death cross (50MA < 200MA) and earnings proximity 7d<=7d. Suitability: aggressive.

Thesis

Rewards

No bull case signals

Risks

Concentration risk — Customer: top-5 customers unbilled receivables (83.0%)

Concentration risk — Customer: automotive industry customers

Quality below floor (2.5 < 4.0)

Key Metrics

P/E (TTM)—

P/E (Fwd)-771.0

Mkt Cap$3.3B

EV/EBITDA-20.6

Profit Mgn-8.3%

ROE-4.3%

Rev Growth59.4%

Beta2.97

DividendNone

Rating analysts15

Quality Signals

Piotroski F4/9

Options Flow

P/C1.45bearish

IV113%elevated

Max Pain$3-61.9% vs spot

Concentration Risks(10-K Item 1A)

HIGHCustomertop-5 customers unbilled receivables83%
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.'
HIGHCustomerautomotive industry customers
10-K Item 1A: 'SoundHound’s largest customers are currently in the automotive industry, and automotive production and sales are highly cyclical'

Material Events(8-K, last 90d)

2026-03-18Item 5.02MEDIUM
CFO Nitesh Sharan resigned effective April 3, 2026 to join a quantum computing company. James Hom (co-founder, current CPO and board member) appointed Interim CFO effective April 3, 2026 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

Overall = weighted sum of the 10 dimension scores. Fundamentals (Value/Quality/Growth) carry 45%; market signals (Momentum/Sentiment/Insider/Peer) carry 40%; structure (Technical/Risk/Catalyst) carries 15%.

DimensionScoreWeightContribution

Value5.415%0.81

Quality2.515%0.38

Growth10.015%1.50

Momentum3.610%0.36

Sentiment7.010%0.70

Insider Activity3.810%0.38

Peer Rank4.910%0.49

Technical Setup2.55%0.13

Risk Profile2.45%0.12

Catalyst7.25%0.36

Overall (Σ contributions)5.22

Small float-rounding may cause last-digit differences between this sum and the displayed Overall.

Volatile — 6.9% daily ATR makes tight stops impractical. Position-size conservatively.static

Short Interest

0.0

Volatility

0.0

Implied Vol

0.0

Beta

0.1

Max Pain Risk

3.0

Put Call

3.7

Days To Cover

4.2

Debt Equity

5.4

News Risk

5.5

High short interest justified: 38%High IV: 113%Above max pain $3Concentration risks: 2 HIGH (10-K Item 1A — sized via position_sizing, validated via buy_confidence)

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

Roe

0.0

Roa

0.0

Operating Margin

0.0

Net Margin

0.0

Fcf Quality

0.0

Piotroski F

4.4

Gross Margin

4.5

Moat

5.0

Current Ratio

8.4

Cash-burning: FCF -11% of revenueNo competitive moatQuality concerns

Technicals below the gate floor. Component breakdown shows what dragged the score down.static

52w Position

0.0

Bollinger

3.5

Support Resistance

3.9

Momentum below the gate floor. Component breakdown shows what dragged the score down.static

Volume

0.0

Obv

1.0

Rsi

3.4

Ma Position

6.0

Macd

7.7

Volume distribution (falling OBV)Below 200-MA, MA slope -4.0%/30d — confirmed downtrend

GatesMomentum 3.6<4.5Death cross (50MA < 200MA)EARNINGS PROXIMITY 7d<=7dA.R:R 4.1 ≥ 1.5Insider activity: OKNo SEC red flagsNEWS EVENTS NONE RECENTSEMI CYCLE PEAK CLEARRecoverySuitability: Aggressive

RSI

66 · Neutral

↑ 20D MA↑ 50D MA↓ 200D MADEATH CROSSSupport $6.22Resistance $8.94

Price Targets

$13

A.Upside+61.4%

A.R:R4.1:1

Position Sizing

ConvictionNone

Suggested %0.5%

Max %1%

RegimeSteady

Risk Alerts

! Quality below floor (2.5 < 4.0)

! Momentum score 3.6/10 — below 4.5 minimum

! Death cross — 50-day MA below 200-day MA

Earnings

1/4 beats

Next Earnings2026-05-07 (7d)

Verdict History

reverse chrono — latest first

Loading history...

Verdicts are recorded on every nightly pipeline run. Rows capture transitions (verdict flips, score deltas ≥0.3, entry/TP/SL changes). Rows with a ▶ can be expanded to see the change reason. Aggregate cohort performance is tracked in the recommendation ledger.

Frequently Asked Questions

Is SOUN stock a buy right now?

Sell if holding. Engine safety override at $7.88: a dimension score below its floor triggers a hard block regardless of the otherwise-positive setup — overall score 5.2/10 and A.R:R 4.1:1 is above the 1.5:1 BUY gate. Specifically: High short interest: 38%; Elevated put/call ratio: 1.45; Below-average business quality. Chart setup: Death cross but MACD improving, RSI 66. Prior stop was $7.32. Score 5.2/10, moderate confidence.

What is the SOUN stock price target?

Take-profit target: $12.72 (+61.5% upside). Prior stop was $7.32. Stop-loss: $7.32.

What are the risks of investing in SOUN?

Concentration risk — Customer: top-5 customers unbilled receivables (83.0%); Concentration risk — Customer: automotive industry customers; Quality below floor (2.5 < 4.0).

Is SOUN overvalued or undervalued?

SoundHound AI, Inc. trades at a P/E of N/A (forward -771.0). TrendMatrix value score: 5.4/10. Verdict: Sell.

What do analysts say about SOUN?

15 analysts cover SOUN with a consensus score of 4.1/5. Average price target: $15.

What does SoundHound AI, Inc. do?SoundHound AI provides independent Voice AI and conversational intelligence solutions for businesses across automotive,...