AICoin AI: SoundHound AI Shares Drop Despite Strong Q3 Earnings and Upbeat 2025 Forecast
SoundHound AI (SOUN) shares dropped over 11% in extended trading, despite reporting robust third-quarter results. The voice AI company generated $42 million in revenue, marking a 68% year-over-year increase and surpassing the $40.5 million consensus estimate. Growth was driven by enterprise adoption across automotive, healthcare, and consumer sectors.
While SoundHound reported an adjusted net loss of $0.03 per share, this was an improvement from both analyst expectations of a $0.09 loss and the prior-year $0.04 deficit. The company also raised its 2025 revenue guidance, citing strong pipeline visibility—yet this failed to prevent the post-earnings selloff.
Wall Street maintains a Moderate Buy rating on SOUN, with a $16.67 average price target implying 16.8% upside. Analysts may adjust targets following these mixed results—solid fundamentals overshadowed by market concerns over growth sustainability.
