SoundHound AI, Inc.

Key Points
SoundHound AI has disappointed investors so far in 2026, but it has the ability to regain its mojo.
The company is growing faster than the conversational AI market in which it operates.
SoundHound's projection of a larger revenue increase next year and its 12-month price target suggest it could embark on a terrific bull run.
SoundHound AI (NASDAQ: SOUN) stock has taken a severe beating so far this year, losing nearly 40% of its value as of this writing. Shares of the company that provides conversational artificial intelligence (AI) solutions to customers are now trading close to their 52-week low, but what's worth noting is that the steep drop in SoundHound's stock price doesn't seem justified.
After all, SoundHound operates in the fast-growing conversational AI market, where demand for agentic AI solutions is rising rapidly. Additionally, SoundHound's results have been solid in recent quarters, and the company is pulling the right strings to ensure that it remains a key player in the conversational AI space.
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We will take a closer look at the company's prospects in this article and check if it is worth investing $1,000 in this AI stock in anticipation of a turnaround in its fortunes.
SoundHound AI's robust growth doesn't justify the stock's slide
When SoundHound AI released its Q1 results in May this year, it reported a 52% year-over-year increase in revenue to $44.2 million. The company also announced the acquisition of conversational AI solutions provider LivePerson to strengthen its voice and agentic AI offerings. This seems like a smart move that should ideally bolster SoundHound's growth.
LivePerson's conversational AI and customer engagement platform helps clients automate and manage customer interactions across messages, social media applications, and voice. The company serves multiple verticals, including retail, financial services, healthcare, automotive, and travel and hospitality. SoundHound notes that this acquisition is a good fit and will enhance its addressable revenue opportunity by $500 million.
The LivePerson acquisition is anticipated to close in the second half of 2026, and SoundHound estimates it will contribute at least $100 million in additional revenue in 2027 from its existing customer base. In all, SoundHound expects its 2027 revenue to land in the $350 million-$400 million range, at least. For comparison, SoundHound's 2026 revenue is expected to land at $232 million, according to consensus estimates.
That would be a 37% increase over last year. So, SoundHound's 2027 revenue estimate points to a significant acceleration in growth next year, though don't be surprised to see the company exceeding expectations since the acquisition will also open cross-selling opportunities. Also, SoundHound's focus on bolstering its conversational AI platform through the acquisition of LivePerson should strengthen its position in the fast-growing conversational AI space.
The company was recently named a leader in conversational AI by market research firm Gartner, which explains why it has been growing faster than the market it operates in. Grand View Research predicts that the conversational AI market will experience annual growth of almost 24% through 2033, growing from $17.7 billion in revenue this year to almost $79 billion at the end of the forecast period.
So, SoundHound is making the right moves to capitalize on this multibillion-dollar opportunity in the long run. Also, the potential acceleration in its revenue growth in 2027 could spark a turnaround in this tech stock following a poor performance so far this year.
In fact, analysts expect SoundHound to deliver impressive gains over the coming year, which is why it may be a good idea to invest $1,000 of your investible cash into this company.
Wall Street expects the stock to jump substantially
SoundHound AI has a 12-month median price target of $12, according to nine analysts covering the stock. That points to potential gains of 87% over the next year. What's more, seven of the analysts covering SoundHound rate it as a buy, which isn't surprising considering the points discussed in this article.
So, a $1,000 investment in SoundHound could be worth almost $1,900 in a year, and I won't be surprised to see it indeed living up to Wall Street's expectations. SoundHound's slide in 2026 means that investors can now buy it at 14.4 times sales, a significant discount to its price-to-sales ratio of 26.6 at the end of 2025.
Of course, SoundHound trades at a premium to the U.S. technology sector's average sales multiple of 7.3, but the potential jump in its growth rate next year justifies that valuation. If the company achieves $400 million in revenue in 2027 and maintains its sales multiple of 14.4 by year-end, its market cap could reach $5.8 billion.
That's just over double SoundHound's current market cap, which is why investors looking to invest $1,000 into a top AI stock should take a closer look at this name before it starts surging once again.
Should you buy stock in SoundHound AI right now?
Before you buy stock in SoundHound AI, consider this:
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Harsh Chauhan has no position in any of the stocks mentioned. The Motley Fool has positions in and recommends SoundHound AI. The Motley Fool recommends Gartner. The Motley Fool has a disclosure policy.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.

Prediction: $1,000 Invested in SoundHound AI Stock Will Be Worth This Much in 1 Year

Artificial intelligence is rapidly transforming customer engagement as enterprises adopt conversational AI, intelligent virtual agents and automation to improve customer experience while lowering service costs. Companies that can deliver scalable, enterprise-grade AI platforms are expected to benefit from this multiyear technology shift. SoundHound AI SOUN and Five9 FIVN are among the companies capitalizing on this opportunity, but they approach the market from different angles.
SoundHound has evolved into a voice-first, agentic AI platform serving industries ranging from automotive and restaurants to financial services, while Five9 remains a leader in cloud contact center software that is embedding AI across its customer experience platform.
Let's dive deep and closely compare the fundamentals of the two stocks to determine which one is a better investment now.
The Case for SoundHound Stock
SoundHound continues to position itself as one of the fastest-growing pure-play conversational AI companies. In the first quarter of 2026, revenues increased 52% year over year, while its core Automotive and IoT AI business grew 88%, excluding acquisitions, highlighting robust underlying demand. The company also unveiled OASYS, its self-learning agentic AI platform that enables enterprises to build, deploy and continuously improve AI agents across voice, text, chat, kiosks and other customer touchpoints.
The pending acquisition of LivePerson represents another major growth catalyst. The transaction is expected to create one of the industry's largest conversational AI customer bases, spanning 25 Fortune 100 companies and more than 30 countries. Management expects substantial cross-selling opportunities by combining SoundHound's voice AI with LivePerson's digital messaging capabilities, while projecting a long-term revenue opportunity of roughly $500 million from the combined customer base.
Beyond acquisitions, SoundHound continues to expand across restaurants, automotive, financial services, healthcare, telecommunications and retail. Management highlighted increasing enterprise wins, growing adoption of Voice Insights analytics and strong customer ROI from its AI-powered drive-thru solutions. The company also ended the quarter with $216 million in cash and no debt, providing flexibility to fund future expansion.
Nevertheless, the investment case still carries meaningful risks. The company remains unprofitable, with negative adjusted EBITDA and operating cash flow. Integrating LivePerson while simultaneously investing heavily in proprietary AI models could pressure margins further if anticipated revenue synergies take longer than expected to materialize.
The Case for Five9 Stock
Five9 offers investors a more mature AI story built on a profitable cloud contact center platform. Rather than pursuing rapid acquisitions, the company has focused on integrating generative AI into its existing intelligent customer experience platform while maintaining disciplined financial execution.
First-quarter 2026 results reflected that strategy. Revenues increased 9% year over year to $305 million, while subscription revenues accelerated 13%. More importantly, adjusted EBITDA rose 41%, operating cash flow increased 32% and free cash flow climbed 42%, demonstrating continued operating leverage. Dollar-based retention rates of 105% overall and 107% for subscription customers indicate that existing clients continue expanding their usage of the platform.
Five9 is also strengthening its competitive position through AI Agents, GenAI Studio and partnerships such as its enterprise AI solution with Google Cloud. Management believes AI significantly expands its addressable market by extending beyond cloud contact center software into AI-driven labor automation, creating a substantially larger long-term opportunity.
Financial discipline further strengthens the investment thesis. During the latest quarter, Five9 announced a new $200 million share repurchase authorization after completing the remaining balance of its previous program, highlighting confidence in future cash generation. The company also reaffirmed its full-year outlook despite macroeconomic uncertainty.
The primary challenge is moderating growth. Revenue expansion has slowed into the high-single digits as the company has matured. Management also acknowledged that AI could gradually reduce traditional subscription revenues if newer AI offerings fail to fully offset evolving customer purchasing patterns.
Five9 Has Outperformed in the Market
The market has rewarded Five9's improving profitability while remaining cautious toward SoundHound's higher-risk growth strategy. Five9 shares have gained 15.3% year to date (YTD), outperforming both the Zacks Computer and Technology sector, which has advanced 9.7%, and the S&P 500, up 7.5%. In comparison, SoundHound shares have plunged 38.2% over the same period.
SOUN vs FIVN Price Performance (YTD)
Image Source: Zacks Investment Research
Among comparable enterprise AI and customer experience software companies, Cisco Systems CSCO has surged 68.1% YTD as investors increasingly recognize its AI networking opportunity. Meanwhile, NICE Ltd. NICE has lost 47% amid softer demand for customer experience software and competitive pressures. While SoundHound has significantly lagged Five9 and Cisco, it has performed better than NICE.
SoundHound Commands the Premium Multiple
The valuation gap between the two companies reflects their contrasting business models and investor expectations. On a forward 12-month price-to-sales basis, SoundHound trades at 10.49X, well above the Zacks Computer and Technology sector average of 6.18X, suggesting investors continue to price in substantial long-term AI growth despite ongoing losses. Five9, by comparison, trades at just 1.33X forward sales despite generating positive earnings and cash flows.
SOUN vs FIVN Valuation (P/S F12M)
Image Source: Zacks Investment Research
Peer valuations reinforce this contrast. Cisco Systems trades at 6.65X forward sales, reflecting confidence in its expanding AI portfolio, while NICE trades at 1.57X. Five9 therefore trades at a discount to both Cisco and NICE despite improving profitability and expanding AI capabilities, whereas SoundHound remains the most expensive stock in the group, leaving relatively little room for execution disappointments.
Estimate Trends Favor Five9
Analysts' earnings expectations further separate the two companies. For SoundHound, the Zacks Consensus Estimate for 2026 remains unchanged over the past 60 days at a loss of 15 cents per share, wider than last year's reported loss of 13 cents. Revenues are still projected to increase 38% in 2026, followed by another 15.8% growth in 2027, underscoring robust top-line momentum despite continuing losses.
SOUN Estimate
Image Source: Zacks Investment Research
Five9 presents a more balanced outlook. The Zacks Consensus Estimate for 2026 earnings has remained unchanged at $3.26 per share over the past 60 days, while the 2027 estimate has increased to $3.79 from $3.77. Analysts expect 2026 revenue growth of 9.7%, followed by another 10.1% increase in 2027, while earnings are projected to grow 10.1% in 2026 and 16.2% in 2027. These revisions point to improving profitability supported by disciplined execution.
FIVN Estimate
Image Source: Zacks Investment Research
Which Stock Offers Better Growth?
Both companies are positioned to benefit from rising enterprise adoption of conversational AI, but they appeal to different investor profiles. SoundHound offers the more aggressive growth story. Its rapidly expanding enterprise pipeline, proprietary OASYS platform and pending LivePerson acquisition could substantially expand its addressable market over the next several years. However, the company still faces meaningful execution, integration and profitability risks.
Five9 offers a more balanced investment proposition. The company combines consistent recurring revenue, improving margins, healthy cash generation, disciplined capital allocation and expanding AI capabilities at an attractive valuation. Its improving earnings outlook further strengthens the investment case.
Since both stocks currently carry a Zacks Rank #3 (Hold), Five9 appears to offer the better growth opportunity today. While SoundHound could ultimately generate stronger long-term revenue growth, Five9's combination of profitable expansion, valuation support, stronger share price momentum and improving earnings visibility provides a more compelling risk-reward profile for investors seeking exposure to the customer AI market.
You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
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The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.

SoundHound vs. Five9: Which Customer AI Stock Offers Better Growth?

Key Points
SoundHound's business has been growing at a fast pace, largely due to acquisitions.
It continues to struggle with profitability, however.
SoundHound AI (NASDAQ: SOUN) is having a tough year, as its shares are down 35% thus far in 2026. Despite achieving significant growth and having promising opportunities in the voice artificial intelligence (AI) market, investors have become increasingly bearish on the stock.
Next week, it posts its latest quarterly numbers. Could they provide the catalyst that SoundHound needs to get out of its free fall this year? And is buying the tech stock before they come out a good move for investors?
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SoundHound's been growing, but its losses remain a big concern
Both times SoundHound reported earnings this year, the tech stock fell sharply afterward. Back in May, it posted an impressive 52% revenue growth for the first quarter. And yet, the stock would fall from a high of nearly $10 before the numbers came out to a low of less than $8 in the days afterward.
While SoundHound has been growing its business, uncovering its organic performance has become more challenging as acquisitions have expanded its operations. That has made the business broader, more diverse, while also boosting its top line and muddying its overall financials. Its adjusted loss last quarter totaled $26.6 million, compared with a $22.3 million loss in the prior-year period. Its gross margins also deteriorated from 35.5% a year ago to 31.1%.
Leaning on acquisitions can add risk and cost to a company's operations, and given that acquisitions are a key part of SoundHound's strategy, it may not be surprising that seemingly strong growth isn't enough to give the stock a boost after earnings.
The stock could still go lower
Although SoundHound's stock hasn't been doing well this year, it's still trading higher than its 52-week low of $5.83. And it could sink back to those levels if it can't convince growth investors that it's improving in earnings. Revenue growth alone hasn't been enough to lift the stock, and that may be a pattern that continues in future quarters.
Looking at SoundHound's financials, it's hard to make the case that it's become a better investment. It's growing through acquisitions, but whether it's actually setting itself up for success and has a path to profitability remains debatable.
SoundHound still has a lot to prove, which is why I wouldn't buy it before it reports earnings. There's plenty of risk with the stock, and there's no guarantee it hasn't bottomed out, either.
Should you buy stock in SoundHound AI right now?
Before you buy stock in SoundHound AI, consider this:
The Motley Fool Stock Advisor analyst team just identified what they believe are the 10 best stocks for investors to buy now… and SoundHound AI wasn’t one of them. The 10 stocks that made the cut could produce monster returns in the coming years.
Consider when Netflix made this list on December 17, 2004... if you invested $1,000 at the time of our recommendation, you’d have $377,990!* Or when Nvidia made this list on April 15, 2005... if you invested $1,000 at the time of our recommendation, you’d have $1,269,518!*
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*Stock Advisor returns as of July 27, 2026.
David Jagielski, CPA has no position in any of the stocks mentioned. The Motley Fool has positions in and recommends SoundHound AI. The Motley Fool has a disclosure policy.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
Founded in 1993 in Alexandria, VA., by brothers David and Tom Gardner, The Motley Fool is a multimedia financial-services company dedicated to building the world's greatest investment community. Reaching millions of people each month through its website, books, newspaper column, radio show, television appearances, and subscription newsletter services, The Motley Fool champions shareholder values and advocates tirelessly for the individual investor. The company's name was taken from Shakespeare, whose wise fools both instructed and amused, and could speak the truth to the king -- without getting their heads lopped off.

Should You Buy SoundHound AI Stock Before Aug. 5?

SoundHound AI (NASDAQ: SOUN) aims to control the conversational layer that connects users, AI models, and real-world services. Its growing presence in vehicles and restaurants creates an intriguing opportunity, but profitability remains the crucial test that could determine whether this emerging platform becomes an enduring AI business.
Stock prices used were the market prices of July 10, 2026. The video was published on July 19, 2026.
Where to invest $1,000 right now? Our analyst team just revealed what they believe are the 10 best stocks to buy right now, when you join Stock Advisor. See the stocks »
Should you buy stock in SoundHound AI right now?
Before you buy stock in SoundHound AI, consider this:
The Motley Fool Stock Advisor analyst team just identified what they believe are the 10 best stocks for investors to buy now… and SoundHound AI wasn’t one of them. The 10 stocks that made the cut could produce monster returns in the coming years.
Consider when Netflix made this list on December 17, 2004... if you invested $1,000 at the time of our recommendation, you’d have $371,842!* Or when Nvidia made this list on April 15, 2005... if you invested $1,000 at the time of our recommendation, you’d have $1,244,783!*
Now, it’s worth noting Stock Advisor’s total average return is 900% — a market-crushing outperformance compared to 207% for the S&P 500. Don't miss the latest top 10 list, available with Stock Advisor, and join an investing community built by individual investors for individual investors.
Rick Orford has no position in any of the stocks mentioned. The Motley Fool has positions in and recommends SoundHound AI. The Motley Fool has a disclosure policy. Rick Orford is an affiliate of The Motley Fool and may be compensated for promoting its services. If you choose to subscribe through their link, they will earn some extra money that supports their channel. Their opinions remain their own and are unaffected by The Motley Fool.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.

SoundHound AI Could Be a Great Long-Term Buy. Here's the Bull Case.

Key Points
SoundHound's business has grown via acquisitions, and they could help position it for more growth ahead.
The AI voice generators market is expected to grow at nearly 30% annually.
The stock has considerable upside, but there's still ample risk with this investment.
Investing in a top artificial intelligence (AI) company can be a great way for investors to amass some significant returns. Taking a chance on a modestly valued AI stock may yield even greater gains, enabling growth investors to double their money (or more).
SoundHound AI (NASDAQ: SOUN) has a relatively modest market cap of $2.7 billion, and it's the type of small-but-growing business that may have investors bullish about its future. Although it's been struggling this year and is down around 37%, its low valuation could prove to be enticing, given the opportunities in voice AI. Could the tech stock double in value in the near future?
Missed Nvidia in 2009? This Rare Signal Is Flashing Again. In 2009, a "Double Down" signal flashed for a little-known chipmaker called Nvidia. For the first time in years, that same "Total Conviction" signal is flashing for a company 1/100th the size of Nvidia. Continue »
SoundHound AI's business has some encouraging growth opportunities ahead
In recent years, SoundHound has been on an acquisition spree to both diversify and expand its presence in the voice AI space. Recently, it launched its Oasys agentic platform, where AI can learn and improve on its own, enabling agents to get better over time.
With significant opportunities in the space, SoundHound doesn't even need to capture a large share to see its valuation grow. According to projections from Grand View Research, the AI voice generators market is growing at a compounded annual growth rate of 29.5% and will be worth approximately $21.8 billion by 2030. It highlights SoundHound as one of the leading players in the market, as businesses look for personalized AI assistants.
SoundHound has already been generating strong results; however, they've largely been driven by acquisitions, boosting its sales. During the first three months of the year, SoundHound's revenue rose by 52%, totaling $44.2 million. The big challenge will be maintaining a high growth rate while also keeping its costs down, as the company also incurred a net loss of $25 million during the quarter, as it continues to struggle to stay out of the red.
The stock has plenty of upside, but it also carries risk
SoundHound's stock is down around 50% over the past 12 months, so even if it were to return to where it was a year ago, it would have doubled in value from where it trades today. Thus, it's not an outlandish scenario to consider, but SoundHound needs to do more than just grow through acquisitions.
It won't be easy with so much competition in AI these days. That's why, while SoundHound may have significant growth potential, it's not a sure thing. This stock might appeal to growth investors, but it may only be suitable for those with a high tolerance for risk.
Should you buy stock in SoundHound AI right now?
Before you buy stock in SoundHound AI, consider this:
The Motley Fool Stock Advisor analyst team just identified what they believe are the 10 best stocks for investors to buy now… and SoundHound AI wasn’t one of them. The 10 stocks that made the cut could produce monster returns in the coming years.
Consider when Netflix made this list on December 17, 2004... if you invested $1,000 at the time of our recommendation, you’d have $371,842!* Or when Nvidia made this list on April 15, 2005... if you invested $1,000 at the time of our recommendation, you’d have $1,244,783!*
Now, it’s worth noting Stock Advisor’s total average return is 900% — a market-crushing outperformance compared to 207% for the S&P 500. Don't miss the latest top 10 list, available with Stock Advisor, and join an investing community built by individual investors for individual investors.
*Stock Advisor returns as of July 20, 2026.
David Jagielski, CPA has no position in any of the stocks mentioned. The Motley Fool has positions in and recommends SoundHound AI. The Motley Fool has a disclosure policy.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.

Can Investing in SoundHound AI Stock Double Your Money?

Looking at options trading activity among components of the Russell 3000 index, there is noteworthy activity today in Coinbase Global Inc (Symbol: COIN), where a total volume of 85,257 contracts has been traded thus far today, a contract volume which is representative of approximately 8.5 million underlying shares (given that every 1 contract represents 100 underlying shares). That number works out to 109.9% of COIN's average daily trading volume over the past month, of 7.8 million shares. Particularly high volume was seen for the $170 strike call option expiring July 17, 2026, with 6,949 contracts trading so far today, representing approximately 694,900 underlying shares of COIN. Below is a chart showing COIN's trailing twelve month trading history, with the $170 strike highlighted in orange:
DLocal Ltd (Symbol: DLO) options are showing a volume of 26,206 contracts thus far today. That number of contracts represents approximately 2.6 million underlying shares, working out to a sizeable 79.3% of DLO's average daily trading volume over the past month, of 3.3 million shares. Especially high volume was seen for the $15 strike call option expiring August 21, 2026, with 10,253 contracts trading so far today, representing approximately 1.0 million underlying shares of DLO. Below is a chart showing DLO's trailing twelve month trading history, with the $15 strike highlighted in orange:
And SoundHound AI Inc (Symbol: SOUN) saw options trading volume of 202,980 contracts, representing approximately 20.3 million underlying shares or approximately 75.2% of SOUN's average daily trading volume over the past month, of 27.0 million shares. Especially high volume was seen for the $8 strike call option expiring August 21, 2026, with 45,679 contracts trading so far today, representing approximately 4.6 million underlying shares of SOUN. Below is a chart showing SOUN's trailing twelve month trading history, with the $8 strike highlighted in orange:
For the various different available expirations for COIN options, DLO options, or SOUN options, visit StockOptionsChannel.com.
Further COIN Research:
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.

Noteworthy Wednesday Option Activity: COIN, DLO, SOUN

Key Points
SoundHound AI developed a portfolio of conversational artificial intelligence (AI) software products for restaurants, car brands, and more.
The company recently made some key acquisitions that could significantly increase its revenue over the next few years.
Although SoundHound stock was extremely expensive, shares are now trading at a reasonable valuation after its recent decline.
While many artificial intelligence (AI) stocks are outperforming the broader market right now, not every name in this space has been a winner. SoundHound AI (NASDAQ: SOUN) stock is down 37% this year, and it recenty was trading 68% below its 2024 record high.
SoundHound AI is a leading developer of conversational AI software, which is currently used by some of the world's biggest brands across industries such as automotive manufacturing, hospitality, healthcare, and more.
Missed Nvidia in 2009? This Rare Signal Is Flashing Again. In 2009, a "Double Down" signal flashed for a little-known chipmaker called Nvidia. For the first time in years, that same "Total Conviction" signal is flashing for a company 1/100th the size of Nvidia. Continue »
Investors have trimmed their exposure to its stock because of its sky-high valuation, but it's starting to look attractive after its recent losses. Is it time to buy the dip?
SoundHound is rapidly expanding
SoundHound developed a series of in-house conversational AI software products. They include Dynamic Drive-Thru and Dynamic Kiosk for quick-service restaurants, which autonomously take customer orders so employees can focus on other tasks. Then there is the Voice AI platform, which allows car brands to install highly intuitive voice-activated AI experiences into their vehicles.
But SoundHound also expanded over the last few years by acquiring other companies. It bought rival conversational AI company Amelia in 2024, and it recently launched the Amelia 7 platform, which businesses can use to build custom AI agents to serve customers or help employees streamline their workflows. Resorts World Las Vegas uses Amelia to autonomously handle more than half of its incoming customer calls, freeing up employees to provide guests with high-touch luxury experiences.
In April of this year, SoundHound announced plans to acquire LivePerson, which built an AI-powered digital engagement platform that processes message conversations on behalf of businesses and their customers. It powers more than 1 billion messages per month across websites, social media, and chat applications, saving valuable time that would otherwise be spent managing phone calls or email correspondence.
SoundHound's revenue growth is fast, but slowing
SoundHound's revenue soared by 52% year over year during the first quarter of 2026, to come in at a record $44.2 million. While that sounds like a spectacular result, the company's revenue grew at a much faster pace of 151% during the same quarter of 2025. Some investors might be concerned about the apparent loss of momentum, which is one reason for the steep decline in SoundHound stock.
However, the recent acquisition of LivePerson is about to provide a temporary boost to SoundHound's financial results. Management estimates the company's annual revenue will come in somewhere between $225 million and $260 million in 2026, but that number could grow to $400 million in 2027 once LivePerson's revenue is included. Management says there could be as much as $100 million in potential upside, depending on operational performance.
While that is great news, investors also have to keep an eye on SoundHound's mounting losses, because scaling an AI business isn't cheap. During the first quarter, the company suffered a generally accepted accounting principles (GAAP) net loss of $25 million and an adjusted net loss of $26.5 million. Both figures worsened from the same quarter last year.
SoundHound had $216 million in cash and cash equivalents on hand as of March 31, so it can afford to lose money at the current pace for at least the next year or so. But if it isn't profitable by then, it might have to raise more money, diluting existing shareholders and hurting their future potential returns.
SoundHound stock isn't cheap just yet, but it's getting there
SoundHound had a price-to-sales (P/S) ratio of around 100 when its stock peaked in late 2024, which made it extremely expensive. For some context, the Nasdaq-100 technology index currently trades at a P/S ratio of just 6.4.
But the combination of SoundHound's revenue growth and the 68% decline in its stock has pushed its P/S ratio down to a more reasonable level of around 15.
SoundHound isn't necessarily cheap just yet, but if we assume the company will generate $400 million in revenue next year, as management expects, then its forward P/S ratio is just 7.2. That is quite attractive given how fast SoundHound is expanding. Plus, AI software is likely to touch every industry in the future, so the company could have an enormous addressable market.
Nevertheless, SoundHound is still in the early stages of commercializing its product portfolio, so investors who buy its stock today should maintain a five-year time horizon to smooth out any potential volatility and maximize their chances of earning a positive return. It's also a good idea to keep a small position, just in case this opportunity doesn't work out.
Should you buy stock in SoundHound AI right now?
Before you buy stock in SoundHound AI, consider this:
The Motley Fool Stock Advisor analyst team just identified what they believe are the 10 best stocks for investors to buy now… and SoundHound AI wasn’t one of them. The 10 stocks that made the cut could produce monster returns in the coming years.
Consider when Netflix made this list on December 17, 2004... if you invested $1,000 at the time of our recommendation, you’d have $398,160!* Or when Nvidia made this list on April 15, 2005... if you invested $1,000 at the time of our recommendation, you’d have $1,249,202!*
Now, it’s worth noting Stock Advisor’s total average return is 918% — a market-crushing outperformance compared to 209% for the S&P 500. Don't miss the latest top 10 list, available with Stock Advisor, and join an investing community built by individual investors for individual investors.
*Stock Advisor returns as of July 14, 2026.
Anthony Di Pizio has no position in any of the stocks mentioned. The Motley Fool has positions in and recommends SoundHound AI. The Motley Fool has a disclosure policy.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.

SoundHound AI Stock Is Down 37% in 2026. Is This the Ultimate Buying Opportunity, or Is More Downside Ahead?

SoundHound AI SOUN has had a difficult 2026 despite operating in one of the fastest-growing areas of artificial intelligence. The stock has plunged 34.9% year to date, underperforming the Zacks Computers - IT Services industry, which has declined 24.1%. It has also lagged the broader Zacks Computer and Technology sector and the S&P 500 Index, both of which have posted gains this year.
SOUN’s YTD Price Performance
Image Source: Zacks Investment Research
The weakness reflects investor concerns over widening losses, negative cash flow and an uncertain path to profitability rather than slowing demand. While SoundHound continues to report strong revenue growth and expand its enterprise AI platform, the market has become increasingly focused on profitability and cash generation. With the stock now trading well below its recent highs, investors are left wondering whether this represents a buying opportunity or a value trap.
SoundHound’s Revenue Momentum Remains Strong
Fundamentally, SoundHound continues to execute well on the commercial front. First-quarter 2026 revenues increased 52% year over year to a record $44.2 million. More encouragingly, excluding acquisitions, the company's core automotive and IoT AI business grew 88%, showing that underlying demand remains robust rather than acquisition-driven.
Enterprise AI has become the largest contributor to revenues as adoption expands across financial services, healthcare, restaurants, retail, insurance, telecommunications and technology. Management highlighted growing customer diversification, with no single customer contributing more than 10% of quarterly revenues.
The company also reaffirmed its full-year 2026 revenue guidance of $225-$260 million, suggesting management remains confident about demand despite macroeconomic uncertainty. The Zacks Consensus Estimate currently projects revenue growth of roughly 38% in 2026, followed by another 15.8% increase in 2027.
New Products and Acquisitions Expand the Opportunity
SoundHound is steadily transforming itself from a voice assistant provider into a broader enterprise conversational AI platform.
One of the biggest developments is OASYS, the company's new self-learning orchestrated agentic AI platform. OASYS enables businesses to automatically build, deploy, manage and continuously improve AI agents across voice, chat, web, vehicles, kiosks and other customer touchpoints. The platform reduces implementation time from months to minutes while helping customers automate increasingly complex workflows.
Another important catalyst is the planned acquisition of LivePerson, expected to close during the second half of 2026. The transaction combines SoundHound's proprietary voice and agentic AI capabilities with LivePerson's digital messaging platform, creating a unified omnichannel conversational AI business.
Management believes the combined company will have relationships with 25 Fortune 100 companies, operations across more than 30 countries and a revenue opportunity approaching $500 million from the existing customer base alone. The acquisition is also expected to accelerate the path toward profitability through cross-selling opportunities and operating synergies.
Meanwhile, customer momentum remains encouraging. During the quarter, SoundHound expanded relationships across banking, healthcare, retail, utilities, automotive and technology. The company also broadened its partnership with Casey's, where its AI ordering platform now supports more than 2,600 stores after handling over 21 million customer interactions.
Losses and Cash Burn Continue to Concern Investors
Despite strong revenue growth, profitability remains the biggest concern. First-quarter 2026 GAAP gross margin declined to 31.1% from 36.5% a year earlier, while adjusted EBITDA remained deeply negative. Although management attributed part of the margin pressure to nonrecurring vendor-related costs, investors remain cautious about the company's ability to translate revenue growth into sustainable earnings.
Operating cash flow also moved in the wrong direction. Net cash used in operating activities increased to approximately $26 million during the first quarter from about $19 million a year ago, while total cash declined to roughly $216 million from the end of 2025. Although SoundHound carries no debt, continued cash burn could eventually require additional financing if profitability takes longer than expected.
Management expects cost synergies from previous acquisitions and infrastructure optimization to improve expenses over the coming quarters. However, the company is simultaneously increasing investments in proprietary AI foundation models to support OASYS. While these investments may strengthen its competitive position over time, they could keep profitability under pressure in the near term.
SOUN Stock’s Valuation Still Requires Execution
Even after the sharp decline this year, SoundHound's valuation leaves little room for operational disappointment. The stock currently trades at 11.11X forward 12-month sales, close to the Zacks Computers – IT Services industry average of 11.52X. Although the recent correction has reduced some valuation pressure, investors are still paying a meaningful multiple for a company that remains unprofitable and continues to generate negative operating cash flow.
SOUN’s P/S Ratio (Forward 12-Month) vs. Industry
Image Source: Zacks Investment Research
Estimate revisions also provide limited support. Over the past 60 days, the Zacks Consensus Estimate for 2026 earnings has remained unchanged at a loss of 18 cents per share, wider than last year's loss of 13 cents. Analysts also expect another net loss of 17 cents per share in 2027, indicating profitability is still some distance away.
SOUN Stock’s EPS Estimate
Image Source: Zacks Investment Research
SOUN Stock’s Revenue Estimate
Image Source: Zacks Investment Research
Unless the company demonstrates sustained margin improvement and stronger cash generation, valuation upside may remain constrained.
Assessing SoundHound's Competitive Position
Competition in conversational AI continues to intensify. Cisco Systems CSCO competes with SoundHound through its enterprise conversational AI, Webex AI platform, voice assistants and contact center automation offerings. Cisco benefits from a much larger installed enterprise customer base, stronger profitability and a lower forward price-to-sales multiple of 6.96. Cisco shares have gained 54.5% YTD, highlighting stronger investor confidence.
Five9 FIVN remains another important competitor in AI-powered cloud contact centers, intelligent voice bots and customer engagement automation. Five9 continues expanding enterprise AI capabilities while trading at only 1.49X forward sales. Five9 shares have advanced 28.8% this year, significantly outperforming SoundHound despite operating in a similar enterprise customer environment.
Salesforce CRM also competes aggressively through Agentforce, enterprise AI agents and AI-powered customer service automation integrated with its CRM platform. Salesforce's vast enterprise ecosystem gives it meaningful scale advantages across customer engagement. Although Salesforce shares have lost 35.3% year to date, the company trades at only 2.92X forward sales and generates consistent profits, making Salesforce a financially stronger competitor than SoundHound.
Should Investors Buy, Hold or Sell SOUN Stock?
SoundHound continues to build an attractive long-term growth story. Enterprise adoption remains healthy, new products like OASYS broaden its addressable market, customer wins continue across industries, and the planned LivePerson acquisition could significantly strengthen its competitive position.
However, investors must balance those positives against persistent losses, higher cash burn, declining margins and an uncertain timeline toward sustainable profitability. The market's reaction to recent earnings shows that investors are now rewarding AI companies that can combine strong growth with improving financial discipline rather than growth alone.
With earnings estimates still projecting losses over the next two years and concerns about cash generation remaining unresolved, caution appears warranted. That view is consistent with SoundHound's current Zacks Rank #4 (Sell). Until the company delivers clearer evidence of improving margins and a path toward consistent profitability, existing investors may prefer to remain cautious, while prospective investors may find better risk-reward opportunities elsewhere in the AI software space.
You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
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SoundHound Plunges 35% YTD: Should You Buy, Hold or Sell the Stock?

Key Points
SoundHound is trying to move beyond answering questions to actually getting things done.
If its AI can help order food, book reservations, or pay for services by voice, the company wouldn't need to rely mainly on software licensing.
SoundHound now serves automakers, restaurants, retailers, and other companies, which could make revenue more resilient if one market slows.
Voice recognition technology has a long history of overpromising, so a little skepticism is healthy here. But SoundHound AI (NASDAQ: SOUN) has turned into one of the more interesting independent players in conversational artificial intelligence (AI). It's the software that lets you talk to a car, a drive-thru speaker, or a customer-service line and actually be understood.
The stock has been on a volatile ride, and it remains a speculative, small-company bet. Still, three developments in its business help explain why some investors think the climb isn't over.
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1. Agentic voice commerce opens a new way to make money
The most important shift involves what the company's technology now does. For years, voice assistants mostly answered questions.
SoundHound is pushing into what the industry calls agentic AI -- software that doesn't just respond but takes action on your behalf. At the start of 2026, the company showed off voice agents built into vehicles and TVs that can order takeout, book a restaurant table through OpenTable, pay for parking, and buy tickets, all hands-free.
Why does that matter for the stock? Because it changes how the company can earn revenue. Instead of only licensing software, sitting in the middle of a purchase lets it participate in the transaction itself. If even a fraction of the millions of cars and devices running its technology start completing everyday errands by voice, it taps a far larger opportunity than selling software licenses alone.
2. SoundHound is no longer a one-industry bet
A common knock on smaller AI companies is that they lean on a single customer or single market. SoundHound has spent the past couple of years deliberately spreading out. Its voice technology now shows up on automotive dashboards, in restaurant drive-thrus and ordering kiosks, on the retail sales floor through a new store-associate assistant it unveiled this year, and across businesses' customer service.
That diversification is more than a talking point. When one industry slows -- say, automakers pull back on new features -- another can pick up the slack, which makes the overall business sturdier. To me, a company selling the same core capability into four or five very different industries is simply harder to knock off course than one riding a single wave.
3. Customers are expanding their usage, not just signing up
The most encouraging signal for any young software company is when existing customers choose to do more business with it, not less. SoundHound got a clear vote of confidence this spring when Casey's General Stores, one of the largest convenience-store chains in the country, renewed and expanded its partnership, rolling the technology across more than 2,600 locations after its ordering agents had already handled tens of millions of guest interactions. That kind of land-and-expand behavior suggests the product is actually working in the field.
SoundHound has also moved to acquire enterprise conversational-AI company LivePerson, which would plug SoundHound's newer agentic platform into a large base of established corporate customers. Buying reach like that can shorten the path to winning big-ticket enterprise deals.
The risks worth keeping in view
Now for the sober side, because it's substantial. SoundHound is still unprofitable and spends heavily to grow, and its stock trades at a rich valuation against a still-modest revenue base -- the kind of situation that can cause shares to fall hard on any disappointment.
A meaningful chunk of the company's ambitious targets leans on acquisitions like LivePerson going smoothly, which is never guaranteed. And SoundHound competes in the same arena as Amazon and Apple, giants with far deeper pockets. Any of those could pressure the story.
SoundHound AI is a classic high-risk, high-reward choice. The bull case rests on real business progress: a shift toward transaction-driven agentic AI, genuine diversification across industries, and customers expanding their commitments. The bear case rests on valuation, cash burn, and deep-pocketed competition.
Should you buy stock in SoundHound AI right now?
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Micah Zimmerman has no position in any of the stocks mentioned. The Motley Fool has positions in and recommends Amazon, Apple, and SoundHound AI. The Motley Fool recommends Casey's General Stores. The Motley Fool has a disclosure policy.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.

3 Reasons SoundHound AI Stock Could Keep Climbing

Key Points
BigBear.ai provides critical decision intelligence and cybersecurity solutions for national defense and federal agencies.
SoundHound AI is rapidly scaling its voice-based agentic platform across the automotive and restaurant industries.
Which of these artificial intelligence players represents the better value for your portfolio today?
As the market moves into late 2026, many investors are choosing between BigBear.ai (NYSE:BBAI) and SoundHound AI (NASDAQ:SOUN) to capture the next wave of growth in the artificial intelligence sector.
While both companies specialize in machine learning, they serve very different markets. BigBear.ai focuses on decision intelligence for government and industrial supply chains, while SoundHound AI provides conversational voice technology. Comparing them helps clarify whether you prefer a defense-heavy stability play or a high-growth consumer technology bet.
The case for BigBear.ai
BigBear.ai provides decision intelligence solutions for supply chains, autonomous systems, and cybersecurity. Its core customers include the U.S. Intelligence Community and the Department of Defense, where it utilizes multi-year engagements for critical government work. Customer concentration is a factor, as 51% of revenue came from customers contributing over 10% each, which adds a layer of risk to the business.
In its 2025 fiscal year (FY), revenue reached $127.7 million, representing a decline of 19.3% compared to the prior year. The company reported a net loss of $293.9 million for the period. This resulted in a negative net margin of 230.2%, a metric that measures how much of each dollar of revenue remains as profit after all operating and non-operating expenses.
As of its December 2025 balance sheet, the debt-to-equity ratio was zero. The current ratio stands at 1.8x, which measures a company's ability to cover its short-term debt and liabilities with assets like cash and accounts receivable. Free cash flow was negative at $42.5 million, representing the actual cash a company generates after accounting for the money spent on capital expenditures like equipment or software.
The case for SoundHound AI
SoundHound AI provides a voice and agentic AI platform that enables conversational experiences across digital and physical channels. It serves major automotive manufacturers and restaurant chains, offering tools that allow users to interact with technology using natural speech. No single customer accounted for more than 10% of revenue in 2025, suggesting a more diversified base than many peers in the software sector.
For FY 2025, revenue grew by 99.4% to reach $168.9 million. Despite this rapid top-line expansion, the company reported a net loss of $14 million. The net margin was negative 8.3%, which indicates that the company is getting closer to breaking even compared to the prior fiscal year when losses were much deeper relative to sales.
Based on the December 2025 balance sheet, the debt-to-equity ratio is zero. Its current ratio is 4.6x, a figure that shows the company has significantly more short-term assets than short-term liabilities. Free cash flow was negative at $103.1 million, reflecting the heavy capital investment required to support rapid organic growth and strategic acquisitions.
Risk profile comparison
BigBear.ai faces material accounting errors that required multi-year restatements, leading to ongoing class action lawsuits. The business relies heavily on government contracts, which are vulnerable to federal budget deficits and potential termination. Furthermore, the company has recorded non-cash goodwill impairment charges exceeding $155 million, while competition from major defense contractors creates pressure on contract terms.
SoundHound AI is navigating legal probes and investor litigation related to its acquisition-related governance and internal control weaknesses. The company relies on aggressive mergers and acquisitions to scale, including the purchase of LivePerson, which creates integration and accounting risks. While revenue is growing, constant capital raises through equity offerings dilute existing shareholders, and competition from massive technology giants such as Amazon poses a threat to long-term pricing power.
Valuation comparison
BigBear.ai trades at a lower revenue multiple, but SoundHound AI offers significantly faster growth and a higher current ratio for investors prioritizing liquidity and momentum.
Forward P/E
n/a
n/a
357.9x
P/S ratio
9.3x
16.9x
n/a
Sector benchmark uses the SPDR XLK sector ETF. Valuation metrics sourced from Financial Modeling Prep (FMP) and may differ from other data providers.
Which stock would I buy in 2026?
Both BigBear.ai and SoundHound AI provide exposure to the artificial intelligence boom, but not all AI-focused companies are positioned to prosper. That’s why my choice to invest in between the two is SoundHound.
BigBear.ai is highly dependent on government contracts to power its revenue growth. When the Trump Administration cut costs in 2025, BigBear.ai was among the enterprises affected, causing a steep revenue decline. In 2026, it posted sales of $34.4 million, a 1% year-over-year drop despite the contribution of its Ask Sage acquisition. This suggests the company continues to struggle with growing its business amidst the hot AI market.
SoundHound’s Q1 sales soared 52% year over year to $44.2 million. The company has achieved impressive growth through a series of acquisitions, although management stated excluding the impact of acquisitions, Q1 revenue rose 88%. This highlights how its core business is seeing strong customer demand.
SoundHound forecasts 2026 sales to hit between $225 million and $260 million, up from 2025’s $168.9 million. The company’s ability to maintain excellent revenue growth is a key factor behind why I think it’s the superior artificial intelligence stock to buy over BigBear.ai.
Should you buy stock in BigBear.ai right now?
Before you buy stock in BigBear.ai, consider this:
The Motley Fool Stock Advisor analyst team just identified what they believe are the 10 best stocks for investors to buy now… and BigBear.ai wasn’t one of them. The 10 stocks that made the cut could produce monster returns in the coming years.
Consider when Netflix made this list on December 17, 2004... if you invested $1,000 at the time of our recommendation, you’d have $407,004!* Or when Nvidia made this list on April 15, 2005... if you invested $1,000 at the time of our recommendation, you’d have $1,244,599!*
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Robert Izquierdo has positions in Amazon and SoundHound AI. The Motley Fool has positions in and recommends Amazon and SoundHound AI. The Motley Fool has a disclosure policy.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.

SoundHound AI, Inc.

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