SoundHound AI shares slide as investors question profitability

SoundHound AI (NASDAQ:SOUN) has seen its stock fall about 30% year‑to‑date, trading around $6.9‑$7 per share after reaching more than $22 last year. The company, valued at roughly $3 billion, has posted strong revenue growth – up more than 50% YoY to $44.2 million in the latest quarter – but its earnings remain in the red, with a negative net margin of 91.8% and operating losses in each of the past four quarters.

Analyst sentiment is mixed: Piper Sandler kept a neutral rating with a $9 target, while other firms have issued buy, strong‑buy and sell recommendations, producing a consensus “moderate buy” and an average price target near $14.9. Insider activity has added pressure, as senior executives sold shares worth about $700,000‑$1 million in June to cover tax obligations.

The combination of aggressive growth, thin profitability, and divergent analyst outlooks has kept the stock under pressure amid broader market concerns about AI‑related valuations.