SoundHound AI Stock Surges 10% Amid Institutional Interest and Strong Revenue Growth
SoundHound AI (SOUN) shares rallied 10% on Friday, closing at $11.75 with trading volume spiking 38% above average. The surge followed Oppenheimer's reaffirmed Perform rating after CES demonstrations, where analysts noted the company's emerging agentic capabilities and platform differentiation.
Third-quarter revenue jumped 67.6% year-over-year to $42.05 million, surpassing expectations despite persistent unprofitability. Institutional ownership remains at 19.3%, while insiders have sold nearly 493,000 shares over three months. The consensus analyst rating stands at Moderate Buy with a $16.07 price target.
Oppenheimer highlighted SoundHound's strategic positioning in voice AI monetization and successful M&A execution. The firm could emerge as one of software's fastest-growing top-line performers, though its -211% net margin underscores ongoing challenges in achieving profitability.
