SoundHound Acquires LivePerson to Reshape AI Platform
Written by Emily J. Thompson, Senior Investment Analyst
Updated: Apr 22 2026
0mins
Source: stocktwits
- Acquisition Overview: SoundHound is acquiring LivePerson in an all-stock deal, restructuring approximately $261.2 million of secured notes, effectively wiping out LivePerson's debt using SoundHound stock and excess cash, indicating SoundHound's commitment to absorbing LivePerson's financial challenges.
- Market Reaction Analysis: Despite shares of SoundHound and LivePerson declining over 5% following the announcement, retail traders remain optimistic about SOUN, arguing that the deal creates a powerful omnichannel AI platform by merging SoundHound's voice technology with LivePerson's digital messaging capabilities.
- Customer Base Advantage: LivePerson serves a robust clientele, including 12 of the top 15 global banks, 4 of the top 5 airlines, and over 10 leading telecommunications providers, handling nearly a billion conversations monthly, which provides SoundHound with valuable market access and growth potential.
- Profitability Outlook: Although SOUN stock has fallen 21% year-to-date, market sentiment remains bullish, with expectations that the acquisition will accelerate SoundHound's path to profitability, particularly by accessing 25% of Fortune 100 companies and enhancing cross-selling opportunities, driving the company towards EBITDA positive growth.
Trade with 70% Backtested Accuracy
Stop guessing "Should I Buy SOUN?" and start using high-conviction signals backed by rigorous historical data.
Sign up today to access powerful investing tools and make smarter, data-driven decisions.
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: 7.000
Low
11.00
Averages
16.60
High
26.00
Current: 7.000
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's Acquisition of LivePerson Faces Challenges
- Stock Price Decline: SoundHound AI's stock has plummeted from over $20 in late 2024 to $6.90 currently, reflecting a more than 30% drop in 2026, indicating market concerns about its future profitability.
- Acquisition Progress: SoundHound is acquiring LivePerson for $43 million, which reported over $243 million in revenue for 2025 but also a net loss exceeding $67 million, raising questions about the viability of the acquisition and its integration.
- Revenue Expectations: SoundHound anticipates that LivePerson will contribute $100 million in revenue in 2027, while its own revenue forecast for 2026 ranges between $225 million and $260 million, suggesting that successful integration could significantly enhance its revenue base.
- Future Outlook: The LivePerson deal is expected to close in the second half of 2026, and SoundHound must effectively integrate it to approach profitability; if successful, the stock price could rebound to the $20 range, but until then, it may continue to slide or trade sideways.
See More
SoundHound's LivePerson Acquisition Faces Challenges Amid Stock Slump
- Stock Decline: SoundHound's stock has fallen over 30% in 2026, currently trading below $7, raising investor concerns about its future performance, especially considering it traded above $20 in late 2024 and early 2025.
- Acquisition Details: SoundHound is acquiring LivePerson for an equity value of $43 million, which offers AI agent services; however, LivePerson reported over $243 million in revenue for 2025 but also faced a net loss of over $67 million, indicating financial struggles.
- Revenue Projections: SoundHound anticipates that LivePerson will contribute $100 million in revenue in 2027, which is significant given SoundHound's projected 2026 revenue of between $225 million and $260 million, and successful integration could enhance profitability.
- Integration Challenges: Although the acquisition is expected to close in the second half of 2026, SoundHound will require time to effectively integrate LivePerson, and investors remain cautious, as the stock may continue to slide or trade sideways until the impact of the acquisition becomes clearer.
See More
Joby Aviation Shares Plunge 20% Amid Rate Hike Fears
- Stock Volatility: Joby Aviation's shares plummeted 20.2% last week, resulting in a negative one-year return, which reflects investor concerns about future growth amid an uncertain macroeconomic environment.
- Impact of Employment Data: The announcement of 172,000 new nonfarm jobs in May, which should be seen as positive, instead raised fears of Federal Reserve interest rate hikes due to consecutive strong job reports, prompting investors to sell off high-growth stocks, including Joby.
- Rival Companies Affected: Joby's competitor Archer Aviation also suffered a 19% drop in stock price, indicating a broader sell-off in the high-growth stock market due to rising interest rate expectations, further exacerbating industry uncertainty.
- Uncertain Market Outlook: Despite Joby completing New York City's first eVTOL air taxi demonstration flights and winning a legal battle, the market remains pessimistic about its future, believing that operations will face greater challenges in a high-interest-rate environment.
See More
Joby Aviation Stock Volatility Analysis
- Stock Price Volatility: Joby Aviation's stock surged over 75% in July 2025, reaching a peak of 107.8% in early August, but subsequently plummeted by 20.2%, resulting in negative returns for investors, highlighting the market's intense interest and associated risks in eVTOL aircraft.
- Economic Data Impact: The Bureau of Labor Statistics reported an addition of 172,000 nonfarm jobs in May, significantly exceeding expectations; although this does not directly affect Joby's operations, it raised investor concerns about potential interest rate hikes by the Federal Reserve, leading to a stock sell-off.
- Rising Rate Expectations: The strong job report has led analysts to believe that the Federal Reserve will likely raise interest rates soon, which typically negatively impacts high-growth companies like Joby that rely on borrowing, prompting investors to seek safer investment alternatives.
- Uncertain Market Outlook: Joby's stock has fallen over 50% from its all-time high, and while there is potential for significant price recovery if FAA approval for commercial operations is granted, the company remains speculative and volatile, with its long-term outlook still in question.
See More
SoundHound AI: Reshaping the Voice Recognition Market
- Market Performance Review: SoundHound AI currently holds a market cap of $3 billion, having fallen over 60% from its 2025 peak, yet its positioning in the AI voice chatbot sector remains noteworthy, indicating some market resilience.
- Technological Innovation Advantage: The company's voice recognition technology excels in noisy environments, making it favored by fast-food and in-car audio systems, successfully expanding partnerships with major chains like White Castle and Chipotle.
- Revenue Growth Potential: In Q1, SoundHound's revenue surged 52% year-over-year to $44.2 million, signing new or expanded deals with at least 24 customers, showcasing rapid growth potential in market share.
- Acquisition Strategy: SoundHound agreed to acquire enterprise conversational AI provider LivePerson in April, further strengthening its position in a competitive market, and if it continues to expand contracts and acquisitions, it could become a long-term winner.
See More
SoundHound AI Faces Competitive Challenges
- Significant Revenue Growth: SoundHound AI achieved a 52% year-over-year revenue growth in Q1, reaching $44.2 million, demonstrating its ability to maintain strong growth momentum despite pressures from larger AI competitors.
- Market Expansion Strategy: The company successfully expanded its agentic AI restaurant ordering systems from drive-thru windows to phone systems, attracting major chain clients like White Castle and Chipotle, thereby solidifying its position in niche markets.
- Frequent Acquisition Activity: SoundHound agreed to acquire enterprise conversational AI provider LivePerson in April, indicating a proactive strategy to enhance market share through acquisitions, aimed at boosting its competitiveness in the customer service sector.
- Complex Competitive Landscape: Although SoundHound performs well in specific areas, its lack of a clear competitive moat poses greater risks in broader customer service applications, especially where background noise reduction technology is less critical.
See More
SoundHound AI's Acquisition of LivePerson Faces Challenges
- Stock Price Decline: SoundHound AI's stock has plummeted from over $20 in late 2024 to $6.90 currently, reflecting a more than 30% drop in 2026, indicating market concerns about its future profitability.
- Acquisition Progress: SoundHound is acquiring LivePerson for $43 million, which reported over $243 million in revenue for 2025 but also a net loss exceeding $67 million, raising questions about the viability of the acquisition and its integration.
- Revenue Expectations: SoundHound anticipates that LivePerson will contribute $100 million in revenue in 2027, while its own revenue forecast for 2026 ranges between $225 million and $260 million, suggesting that successful integration could significantly enhance its revenue base.
- Future Outlook: The LivePerson deal is expected to close in the second half of 2026, and SoundHound must effectively integrate it to approach profitability; if successful, the stock price could rebound to the $20 range, but until then, it may continue to slide or trade sideways.
See More
SoundHound's LivePerson Acquisition Faces Challenges Amid Stock Slump
- Stock Decline: SoundHound's stock has fallen over 30% in 2026, currently trading below $7, raising investor concerns about its future performance, especially considering it traded above $20 in late 2024 and early 2025.
- Acquisition Details: SoundHound is acquiring LivePerson for an equity value of $43 million, which offers AI agent services; however, LivePerson reported over $243 million in revenue for 2025 but also faced a net loss of over $67 million, indicating financial struggles.
- Revenue Projections: SoundHound anticipates that LivePerson will contribute $100 million in revenue in 2027, which is significant given SoundHound's projected 2026 revenue of between $225 million and $260 million, and successful integration could enhance profitability.
- Integration Challenges: Although the acquisition is expected to close in the second half of 2026, SoundHound will require time to effectively integrate LivePerson, and investors remain cautious, as the stock may continue to slide or trade sideways until the impact of the acquisition becomes clearer.
See More
Joby Aviation Shares Plunge 20% Amid Rate Hike Fears
- Stock Volatility: Joby Aviation's shares plummeted 20.2% last week, resulting in a negative one-year return, which reflects investor concerns about future growth amid an uncertain macroeconomic environment.
- Impact of Employment Data: The announcement of 172,000 new nonfarm jobs in May, which should be seen as positive, instead raised fears of Federal Reserve interest rate hikes due to consecutive strong job reports, prompting investors to sell off high-growth stocks, including Joby.
- Rival Companies Affected: Joby's competitor Archer Aviation also suffered a 19% drop in stock price, indicating a broader sell-off in the high-growth stock market due to rising interest rate expectations, further exacerbating industry uncertainty.
- Uncertain Market Outlook: Despite Joby completing New York City's first eVTOL air taxi demonstration flights and winning a legal battle, the market remains pessimistic about its future, believing that operations will face greater challenges in a high-interest-rate environment.
See More
Joby Aviation Stock Volatility Analysis
- Stock Price Volatility: Joby Aviation's stock surged over 75% in July 2025, reaching a peak of 107.8% in early August, but subsequently plummeted by 20.2%, resulting in negative returns for investors, highlighting the market's intense interest and associated risks in eVTOL aircraft.
- Economic Data Impact: The Bureau of Labor Statistics reported an addition of 172,000 nonfarm jobs in May, significantly exceeding expectations; although this does not directly affect Joby's operations, it raised investor concerns about potential interest rate hikes by the Federal Reserve, leading to a stock sell-off.
- Rising Rate Expectations: The strong job report has led analysts to believe that the Federal Reserve will likely raise interest rates soon, which typically negatively impacts high-growth companies like Joby that rely on borrowing, prompting investors to seek safer investment alternatives.
- Uncertain Market Outlook: Joby's stock has fallen over 50% from its all-time high, and while there is potential for significant price recovery if FAA approval for commercial operations is granted, the company remains speculative and volatile, with its long-term outlook still in question.
See More
SoundHound AI: Reshaping the Voice Recognition Market
- Market Performance Review: SoundHound AI currently holds a market cap of $3 billion, having fallen over 60% from its 2025 peak, yet its positioning in the AI voice chatbot sector remains noteworthy, indicating some market resilience.
- Technological Innovation Advantage: The company's voice recognition technology excels in noisy environments, making it favored by fast-food and in-car audio systems, successfully expanding partnerships with major chains like White Castle and Chipotle.
- Revenue Growth Potential: In Q1, SoundHound's revenue surged 52% year-over-year to $44.2 million, signing new or expanded deals with at least 24 customers, showcasing rapid growth potential in market share.
- Acquisition Strategy: SoundHound agreed to acquire enterprise conversational AI provider LivePerson in April, further strengthening its position in a competitive market, and if it continues to expand contracts and acquisitions, it could become a long-term winner.
See More
SoundHound AI Faces Competitive Challenges
- Significant Revenue Growth: SoundHound AI achieved a 52% year-over-year revenue growth in Q1, reaching $44.2 million, demonstrating its ability to maintain strong growth momentum despite pressures from larger AI competitors.
- Market Expansion Strategy: The company successfully expanded its agentic AI restaurant ordering systems from drive-thru windows to phone systems, attracting major chain clients like White Castle and Chipotle, thereby solidifying its position in niche markets.
- Frequent Acquisition Activity: SoundHound agreed to acquire enterprise conversational AI provider LivePerson in April, indicating a proactive strategy to enhance market share through acquisitions, aimed at boosting its competitiveness in the customer service sector.
- Complex Competitive Landscape: Although SoundHound performs well in specific areas, its lack of a clear competitive moat poses greater risks in broader customer service applications, especially where background noise reduction technology is less critical.
See More
