Short Sellers' Dilemma and Opportunities
Written by Emily J. Thompson, Senior Investment Analyst
Updated: 1 hour ago
0mins
Source: seekingalpha
- Short Seller Focus: There is a divergence in market sentiment regarding short sellers, with some analysts believing certain companies are in trouble while others see them as prime candidates for a short squeeze, reflecting the complexity of market emotions.
- Ondas Acquisition Activity: Ondas Inc. acquired Cyberhawk for $125 million, and although this transaction barely registered on Wall Street's radar, the establishment of its M&A moat could support future growth for the company.
- CleanSpark Risk Assessment: CleanSpark's pivot towards artificial intelligence is viewed as high-risk, leading to insufficient market confidence in its future performance, which may negatively impact its stock price and investor sentiment.
- Vibrant Market Discussion: Investors are actively discussing the pros and cons of short selling in the comments section, showcasing the high level of interest in short trading strategies and the clash of differing viewpoints.
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Analyst Views on SOUN
Wall Street analysts forecast SOUN stock price to rise
7 Analyst Rating
5 Buy
2 Hold
0 Sell
Moderate Buy
Current: 6.440
Low
11.00
Averages
16.60
High
26.00
Current: 6.440
Low
11.00
Averages
16.60
High
26.00
About SOUN
SoundHound AI, Inc. is engaged in conversational intelligence, offering voice and conversational artificial intelligence (AI) solutions that let businesses offer experiences to their customers. Through its proprietary technology, its voice AI delivers speed and accuracy in numerous languages to product creators and service providers across retail, financial services, healthcare, automotive, smart devices, and restaurants via AI-driven products, such as Smart Answering, Smart Ordering, Dynamic Drive Thru, and Amelia AI Agents. Along with SoundHound Chat AI, a voice assistant with integrated Generative AI, it powers various products and services, and processes billions of interactions each year for businesses. Its developer platform, Houndify, is an open-access platform that allows developers to leverage its Voice AI technology and a library of over 100 content domains, including commonly used domains for points of interest, weather, flight status, sports and more.
About the author
Emily J. Thompson
Emily J. Thompson, a Chartered Financial Analyst (CFA) with 12 years in investment research, graduated with honors from the Wharton School. Specializing in industrial and technology stocks, she provides in-depth analysis for Intellectia’s earnings and market brief reports.
SoundHound AI Faces Profitability Challenges Amid Growth
- Growth vs. Profitability: While SoundHound AI has achieved impressive revenue growth in recent quarters, its profitability remains a concern as it has reported operating losses for the past four quarters, indicating a potentially aggressive pursuit of growth without adequate cost control.
- Poor Stock Performance: In 2026, SoundHound AI's stock has declined approximately 30%, currently trading around $7, which would require a tripling in value to return to last year's high of over $22, reflecting market skepticism about its future profitability.
- Valuation Risks: Despite a market cap of $3 billion, SoundHound AI trades at 16 times its revenue, suggesting that its stock is not cheap, and investor confidence in its financial outlook is waning, potentially leading to further stock price pressure.
- Market Environment Challenges: With interest rates likely to rise further, high-risk stocks like SoundHound AI may face increased market pressure, and analysts generally believe that without a significant improvement in profitability, a stock rally is unlikely in the near term.
See More
Short Sellers' Dilemma and Opportunities
- Short Seller Focus: There is a divergence in market sentiment regarding short sellers, with some analysts believing certain companies are in trouble while others see them as prime candidates for a short squeeze, reflecting the complexity of market emotions.
- Ondas Acquisition Activity: Ondas Inc. acquired Cyberhawk for $125 million, and although this transaction barely registered on Wall Street's radar, the establishment of its M&A moat could support future growth for the company.
- CleanSpark Risk Assessment: CleanSpark's pivot towards artificial intelligence is viewed as high-risk, leading to insufficient market confidence in its future performance, which may negatively impact its stock price and investor sentiment.
- Vibrant Market Discussion: Investors are actively discussing the pros and cons of short selling in the comments section, showcasing the high level of interest in short trading strategies and the clash of differing viewpoints.
See More
SoundHound AI COO Sells 65K Shares Amid Challenges
- Insider Selling Signal: SoundHound AI's COO Michael Zagorsek sold 64,994 shares on June 15 for approximately $485,000, representing 3.8% of his direct holdings, which, while not substantial, sends a cautionary signal amid the company's poor stock performance.
- Post-Sale Holdings: Following the sale, Zagorsek retains 1,669,497 shares of Class A Common Stock valued at about $12.2 million, indicating continued alignment with shareholders while maintaining significant equity capacity for future liquidity events.
- Financial Performance: SoundHound AI's shares have declined by 30.7% over the past year, contrasting sharply with the Russell 2000 index's 44.2% gain, highlighting the company's relative weakness, with a reported net loss of $25 million in Q1 compared to a profit of $129.9 million in the same period last year.
- Executive Selling Trend: In addition to Zagorsek, other executives, including CEO Keyvan Mohajer and the CTO, have also sold shares, with none of these transactions conducted under 10b5-1 trading plans, reflecting concerns about the company's future outlook among senior leadership.
See More
SoundHound AI COO's Share Sale Raises Concerns
- Executive Share Sale: SoundHound AI's COO Michael Zagorsek sold 64,994 shares on June 15 for approximately $485,000, representing 3.7% of his holdings, raising concerns about the company's outlook amid a challenging market.
- Holding Status: Post-transaction, Zagorsek retains 1,669,497 shares, and while the sale is a small percentage, it, along with other executives' sales, signals potential lack of confidence in the company's future.
- Declining Performance: The company reported a $25 million loss in Q1 compared to a $129.9 million profit in the same period last year, highlighting its struggles in the competitive voice AI sector, with Q2 results expected in early August.
- Poor Market Performance: SoundHound AI's shares have dropped 30.7% over the past year, while the Russell 2000 index has gained 44.2%, indicating a significant underperformance in the market landscape.
See More
SoundHound AI Faces Stock Challenges Amid Growth
- Growth Challenges: SoundHound AI has shown impressive revenue growth in recent quarters; however, its stock has plummeted about 30% in 2026, currently trading at $7, far below last year's peak of over $22, indicating market concerns over its profitability.
- Poor Financial Health: Although the company posted a profit in one quarter, its overall financial health remains weak due to acquisition-related noise, with operating losses reported in each of the past four quarters, undermining investor confidence in its future.
- Valuation Pressure: With a market cap of $3 billion, SoundHound AI appears inexpensive, yet it trades at 16 times revenue, suggesting that its stock is not cheap, especially as rising interest rates could further pressure risky stocks like SoundHound AI.
- Investor Sentiment: The reliance on acquisitions for growth without significant improvements in profitability has led to cautious investor sentiment, making it unlikely for the stock to rally unless there is a drastic enhancement in its bottom line.
See More
Jim Cramer's Insights on Various Stocks
- NioCorp Outlook: Jim Cramer views NioCorp as too speculative, favoring MP Materials, which has government backing, indicating stronger market confidence and stability.
- SoFi Investment Opportunity: Cramer highlights that SoFi's stock price around $18 is a buying opportunity, suggesting optimism about its future performance, which may attract more investor interest.
- Rivian Financial Concerns: Cramer expresses concerns over Rivian's financial performance, noting excessive losses and advising caution for investors, which could lead to further declines in stock price.
- SoundHound AI Risks: Cramer gives a very negative assessment of SoundHound AI, labeling it a “meme stock” and recommending selling, reflecting high uncertainty in the market regarding such stocks.
See More
SoundHound AI Faces Profitability Challenges Amid Growth
- Growth vs. Profitability: While SoundHound AI has achieved impressive revenue growth in recent quarters, its profitability remains a concern as it has reported operating losses for the past four quarters, indicating a potentially aggressive pursuit of growth without adequate cost control.
- Poor Stock Performance: In 2026, SoundHound AI's stock has declined approximately 30%, currently trading around $7, which would require a tripling in value to return to last year's high of over $22, reflecting market skepticism about its future profitability.
- Valuation Risks: Despite a market cap of $3 billion, SoundHound AI trades at 16 times its revenue, suggesting that its stock is not cheap, and investor confidence in its financial outlook is waning, potentially leading to further stock price pressure.
- Market Environment Challenges: With interest rates likely to rise further, high-risk stocks like SoundHound AI may face increased market pressure, and analysts generally believe that without a significant improvement in profitability, a stock rally is unlikely in the near term.
See More
Short Sellers' Dilemma and Opportunities
- Short Seller Focus: There is a divergence in market sentiment regarding short sellers, with some analysts believing certain companies are in trouble while others see them as prime candidates for a short squeeze, reflecting the complexity of market emotions.
- Ondas Acquisition Activity: Ondas Inc. acquired Cyberhawk for $125 million, and although this transaction barely registered on Wall Street's radar, the establishment of its M&A moat could support future growth for the company.
- CleanSpark Risk Assessment: CleanSpark's pivot towards artificial intelligence is viewed as high-risk, leading to insufficient market confidence in its future performance, which may negatively impact its stock price and investor sentiment.
- Vibrant Market Discussion: Investors are actively discussing the pros and cons of short selling in the comments section, showcasing the high level of interest in short trading strategies and the clash of differing viewpoints.
See More
SoundHound AI COO Sells 65K Shares Amid Challenges
- Insider Selling Signal: SoundHound AI's COO Michael Zagorsek sold 64,994 shares on June 15 for approximately $485,000, representing 3.8% of his direct holdings, which, while not substantial, sends a cautionary signal amid the company's poor stock performance.
- Post-Sale Holdings: Following the sale, Zagorsek retains 1,669,497 shares of Class A Common Stock valued at about $12.2 million, indicating continued alignment with shareholders while maintaining significant equity capacity for future liquidity events.
- Financial Performance: SoundHound AI's shares have declined by 30.7% over the past year, contrasting sharply with the Russell 2000 index's 44.2% gain, highlighting the company's relative weakness, with a reported net loss of $25 million in Q1 compared to a profit of $129.9 million in the same period last year.
- Executive Selling Trend: In addition to Zagorsek, other executives, including CEO Keyvan Mohajer and the CTO, have also sold shares, with none of these transactions conducted under 10b5-1 trading plans, reflecting concerns about the company's future outlook among senior leadership.
See More
SoundHound AI COO's Share Sale Raises Concerns
- Executive Share Sale: SoundHound AI's COO Michael Zagorsek sold 64,994 shares on June 15 for approximately $485,000, representing 3.7% of his holdings, raising concerns about the company's outlook amid a challenging market.
- Holding Status: Post-transaction, Zagorsek retains 1,669,497 shares, and while the sale is a small percentage, it, along with other executives' sales, signals potential lack of confidence in the company's future.
- Declining Performance: The company reported a $25 million loss in Q1 compared to a $129.9 million profit in the same period last year, highlighting its struggles in the competitive voice AI sector, with Q2 results expected in early August.
- Poor Market Performance: SoundHound AI's shares have dropped 30.7% over the past year, while the Russell 2000 index has gained 44.2%, indicating a significant underperformance in the market landscape.
See More
SoundHound AI Faces Stock Challenges Amid Growth
- Growth Challenges: SoundHound AI has shown impressive revenue growth in recent quarters; however, its stock has plummeted about 30% in 2026, currently trading at $7, far below last year's peak of over $22, indicating market concerns over its profitability.
- Poor Financial Health: Although the company posted a profit in one quarter, its overall financial health remains weak due to acquisition-related noise, with operating losses reported in each of the past four quarters, undermining investor confidence in its future.
- Valuation Pressure: With a market cap of $3 billion, SoundHound AI appears inexpensive, yet it trades at 16 times revenue, suggesting that its stock is not cheap, especially as rising interest rates could further pressure risky stocks like SoundHound AI.
- Investor Sentiment: The reliance on acquisitions for growth without significant improvements in profitability has led to cautious investor sentiment, making it unlikely for the stock to rally unless there is a drastic enhancement in its bottom line.
See More
Jim Cramer's Insights on Various Stocks
- NioCorp Outlook: Jim Cramer views NioCorp as too speculative, favoring MP Materials, which has government backing, indicating stronger market confidence and stability.
- SoFi Investment Opportunity: Cramer highlights that SoFi's stock price around $18 is a buying opportunity, suggesting optimism about its future performance, which may attract more investor interest.
- Rivian Financial Concerns: Cramer expresses concerns over Rivian's financial performance, noting excessive losses and advising caution for investors, which could lead to further declines in stock price.
- SoundHound AI Risks: Cramer gives a very negative assessment of SoundHound AI, labeling it a “meme stock” and recommending selling, reflecting high uncertainty in the market regarding such stocks.
See More
