SoundHound AI Stock Slides After Strong Monthly Rally, Mixed Q1 Results

Shares of SoundHound AI Inc (NASDAQ:SOUN) fell 7.8% to $10.32 on Monday, potentially due to profit-taking following a robust 37% rally over the past month. The pullback comes after the company reported first-quarter earnings on May 8 that showed strong growth but fell short on revenue expectations.

What To Know: The voice AI company posted first-quarter revenue of $29.13 million, missing analyst estimates of $30.38 million. However, it reported a narrower-than-expected adjusted loss of six cents per share, beating forecasts by three cents.

Revenue surged 151% year-over-year, bolstered by strategic acquisitions and strong demand from the automotive and restaurant sectors.

Despite a sequential dip in gross margin and an adjusted EBITDA loss of $22.2 million, SoundHound reaffirmed its 2025 revenue guidance of $157 million to $177 million. The company ended the quarter with $246 million in cash and no debt.

Analysts noted expanding customer diversification and a growing pipeline as positives. H.C. Wainwright meanwhile lowered its price target to $18 but maintained a Buy rating, citing long-term potential driven by the company’s proprietary AI platform and expanding market footprint.

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How To Buy SOUN Stock

Besides going to a brokerage platform to purchase a share – or fractional share – of stock, you can also gain access to shares either by buying an exchange traded fund (ETF) that holds the stock itself, or by allocating yourself to a strategy in your 401(k) that would seek to acquire shares in a mutual fund or other instrument.

For example, in SoundHound AI’s case, it is in the Information Technology sector. An ETF will likely hold shares in many liquid and large companies that help track that sector, allowing an investor to gain exposure to the trends within that segment.

According to data from Benzinga Pro, SOUN has a 52-week high of $24.98 and a 52-week low of $3.82.