Should You Buy SoundHound AI Inc (SOUN) Today? Analysis, Price Targets, and 2026 Outlook.
Conclusion
Hold
Latest Price
8.690
1 Day change
-4.30%
52 Week Range
22.170
Analysis Updated At
2026/01/26
SoundHound AI Inc is not a strong buy at the moment for a beginner investor with a long-term strategy. While the company has shown significant revenue growth and is positioned in a growing AI market, its ongoing profitability concerns, bearish technical indicators, and lack of strong trading signals suggest that it is better to wait for clearer signs of stability and growth before investing.
Technical Analysis
The technical indicators are bearish. The MACD is positive but contracting, RSI is neutral at 36.062, and moving averages are bearish (SMA_200 > SMA_20 > SMA_5). The stock is trading near its support level of 10.292, with resistance at 11.137. Pre-market price is down 0.77%, indicating weak momentum.
Options Data
Bullish
Open Interest Put-Call Ratio
Bullish
Option Volume Put-Call Ratio
The low put-call ratios suggest bullish sentiment in the options market, but this is not strong enough to override other bearish signals.
Technical Summary
Sell
10
Buy
4
Positive Catalysts
Revenue increased by 68% YoY in Q3
Acquisition of Amelia has enhanced customer service solutions and doubled revenue over nine months.
Strong growth expected in the voice AI market, with a forecasted revenue of $170 million in 2025.
Neutral/Negative Catalysts
Operating loss of $115.9 million in Q3 2025, raising concerns about profitability.
Gross margin dropped to 33.13%, down 15.31% YoY.
Analysts have lowered price targets, with Piper Sandler reducing it to $11 from $
Bearish technical indicators and pre-market price decline.
Financial Performance
In Q3 2025, revenue increased by 67.57% YoY to $42.05 million. However, net income remains negative at -$111.13 million, despite improving by 410.92% YoY. EPS improved to -0.27, up 350% YoY, but gross margin dropped to 33.13%, down 15.31% YoY.
Growth
Profitability
Efficiency
Analyst Ratings and Price Target Trends
Analyst sentiment is mixed. Cantor Fitzgerald upgraded the stock to Overweight with a price target of $15, citing strong execution and growth potential. However, Piper Sandler lowered its price target to $11, citing concerns from 10Q disclosures. Analysts are cautious about profitability despite growth in the AI market.
Wall Street analysts forecast SOUN stock price to rise over the next 12 months. According to Wall Street analysts, the average 1-year price target for SOUN is 16.6 USD with a low forecast of 11 USD and a high forecast of 26 USD. However, analyst price targets are subjective and often lag stock prices, so investors should focus on the objective reasons behind analyst rating changes, which better reflect the company's fundamentals.
7 Analyst Rating
Wall Street analysts forecast SOUN stock price to rise over the next 12 months. According to Wall Street analysts, the average 1-year price target for SOUN is 16.6 USD with a low forecast of 11 USD and a high forecast of 26 USD. However, analyst price targets are subjective and often lag stock prices, so investors should focus on the objective reasons behind analyst rating changes, which better reflect the company's fundamentals.
5 Buy
2 Hold
0 Sell
Moderate Buy
Current: 9.080
Low
11
Averages
16.6
High
26
Current: 9.080
Low
11
Averages
16.6
High
26
Piper Sandler
Neutral
downgrade
$15 -> $11
AI Analysis
2026-01-05
Reason
Piper Sandler
Price Target
$15 -> $11
AI Analysis
2026-01-05
downgrade
Neutral
Reason
Piper Sandler lowered the firm's price target on SoundHound to $11 from $15 and keeps a Neutral rating on the shares. The firm adjusted its estimates given 10Q disclosures.
Cantor Fitzgerald
Neutral -> Overweight
upgrade
$13 -> $15
2025-12-12
Reason
Cantor Fitzgerald
Price Target
$13 -> $15
2025-12-12
upgrade
Neutral -> Overweight
Reason
Cantor Fitzgerald last night upgraded SoundHound to Overweight from Neutral with a price target of $15, up from $13. The firm recommends taking advantage of the recent pullback in the shares. SoundHound has executed "very well," cross- selling and upselling voice and conversational artificial intelligence services to its installed base, the analyst tells investors in a research note. Cantor believes expectations are relatively low heading into 2026. It continues to view conversational AI and voice AI as meaningful beneficiaries of secular AI growth trends.
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