Why SoundHound AI (SOUN) Stock Is Falling Today

What Happened?

Shares of voice AI technology company SoundHound AI (NASDAQ:SOUN) fell 4.4% in the morning session after reports surfaced of significant stock sales by key company executives. Specifically, Chief Financial Officer Nitesh Sharan sold over 126,000 shares for approximately $2.1 million, and Vice President of Engineering Majid Emami sold over 78,000 shares, realizing about $1.32 million from the transactions.

The stock market overreacts to news, and big price drops can present good opportunities to buy high-quality stocks. Is now the time to buy SoundHound AI? Access our full analysis report here, it’s free.

What Is The Market Telling Us

SoundHound AI’s shares are extremely volatile and have had 93 moves greater than 5% over the last year. In that context, today’s move indicates the market considers this news meaningful but not something that would fundamentally change its perception of the business.

The previous big move we wrote about was 2 days ago when the stock gained 7.6% on the news that the company announced a partnership with Red Lobster to roll out an AI-powered phone ordering agent across all the restaurant's locations. 

The voice AI technology was designed to handle multiple calls at once, take orders, and answer common guest questions about restaurant hours and menu items. Orders taken by the AI agent were sent directly to Red Lobster's point-of-sale system, which helped reduce the workload for the in-store teams and streamline the takeout process. The collaboration with a large, well-known brand like Red Lobster was seen as a significant step for SoundHound, highlighting the growing demand for its voice ordering services in the restaurant industry.

SoundHound AI is down 17.4% since the beginning of the year, and at $16.65 per share, it is trading 31.3% below its 52-week high of $24.23 from December 2024. Investors who bought $1,000 worth of SoundHound AI’s shares at the IPO in April 2022 would now be looking at an investment worth $2,219.

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