Why Investors Are Fleeing SoundHound Stock (SOUN) - The AI Hype Crashes Hard

SoundHound's AI dream turns into a shareholder nightmare as institutional money bolts for the exits.

The voice recognition darling once rode the artificial intelligence wave to dizzying heights—now reality bites hard. Early backers who bought the AI narrative watch their positions evaporate as quarterly numbers fail to justify the insane valuation multiples.

Revenue growth? More like revenue crawl. The tech might be clever, but clever doesn't pay dividends when you're burning cash faster than a crypto degen on leverage.

Wall Street's latest 'next big thing' suddenly looks like yesterday's news—another cautionary tale in an ecosystem where fundamentals still matter more than buzzwords. Guess some investors finally remembered that revenue beats rhetoric every single time.

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For context, global stock markets are on edge as investors wait for key economic reports and the Jackson Hole central bank meeting later this week. Investors are now focused on Federal Reserve Chair Jerome Powell’s upcoming comments, which could signal whether a U.S. rate cut might happen in September.

Is SOUN Stock a Good Buy Now?

Earlier this month, SoundHound posted record Q2 2025 revenue of $42.7 million, a 217% jump from last year. It also raised its full-year revenue outlook to $160–$178 million, up from the previous $157–$177 million range. The results highlight both opportunity and risk. The company is growing quickly with strong demand and a solid product lineup, but it continues to operate at a loss.

After Q2 results, SoundHound has been in the spotlight on Wall Street. Analysts have raised price targets and upgraded the stock to Buy, reflecting stronger confidence in its growth potential. With the recent pullback, the stock now offers decent upside. For long-term investors, SOUN remains a risky but potentially rewarding bet.

What Is the Price Target for SOUN?

According to TipRanks, SOUN stock has received a Moderate Buy consensus rating, with five Buys and two Holds assigned in the last three months. The average SoundHound stock price target is $15, suggesting a potential upside of 19.57% from the current level.