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SoundHound Stock Dive: Is Recovery Possible?

Bryce TuoheyAvatar
Written by Bryce Tuohey Reviewed by Tim Sykes Fact-checked by Matt Monaco
Updated 9/3/2025, 2:33 pm ET | 6 min
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In this article Last trade Sep, 03 2:49 PM

  • SOUN-5.03%
    SOUN - NYSESoundHound AI Inc.
    $12.74-0.68 (-5.03%)
    Volume:  51.70M
    Float:  403.20M
    $12.65Day Low/High$13.72

SoundHound AI Inc. stocks have been trading down by -5.18 percent amid unfavorable market sentiment and emerging competitive threats.

  • Recent revenue figures highlight a noticeable downturn, with current revenues failing to cover total expenses by almost half, leading to a precarious financial situation.

  • The current tech climate and competitive dynamics are weighing heavily on SoundHound’s market position, causing the shares to face downward pressure.

  • Analysts are closely watching SoundHound’s strategic responses to these market challenges, including potential partnerships and product refinements.

  • Negative profitability margins and substantial operating losses from recent reports are causing investor caution and adding to the bearish sentiment.

Candlestick Chart

Live Update At 14:32:28 EST: On Wednesday, September 03, 2025 SoundHound AI Inc. stock [NASDAQ: SOUN] is trending down by -5.18%! Discover the key drivers behind this movement as well as our expert analysis in the detailed breakdown below.

Overview of SoundHound’s Financial Performance

As millionaire penny stock trader and teacher Tim Sykes, says, “There is always another play around the corner; don’t chase just because you feel FOMO.” Traders must keep this mindset in mind to stay disciplined and avoid unnecessary risks that may lead to potential losses. Patience and the ability to control impulses can make a significant difference in maintaining a successful and stable trading career. Sykes’ advice serves as a reminder to stick to proven strategies and not to be led astray by the fear of missing out.

The financial data of SoundHound AI Inc. paints an unsettling picture. Revenue comes in at roughly $84.69M, however, the expenses vastly outweigh this figure. Diving into the income statement, the company reported an enormous operating loss of $78.05M for the last quarter. This significant gap between revenue and operating costs signals an ongoing struggle to achieve profitability.

SoundHound’s key ratios portray another layer of challenges. For instance, the ebit margin is at a disturbing -175.3%, driving home the point of its cost-heavy operations. Meanwhile, the enterprise value stands high at over $5B, hinting at investor expectations yet to be met by current fundamentals.

Despite having a strong gross margin of 40.5%, the broader profitability matrix is bleak, reflecting in the company’s stock price reaction. The quick and current ratios are favorable at 4.3 and 4.8, respectively, indicating some stability in liquidity, yet operationally, the story isn’t as appealing.

Lastly, on the balance sheet, the total liabilities are kept in check in contrast to total assets, but the negative retained earnings of over $887M remain a concerning figure that exacerbates skepticism amongst cautious investors.

Potential Causes for Stock Movement

The decline in stock price this week is not solely based on financial reports. Several dynamic market influences are at play. Tensions related to competitive pressures from larger tech firms cutting into its voice AI market share are contributing factors. This landscape challenges SoundHound not just from a product development perspective but also in maintaining its customer and market relevance.

More Breaking News

The global tech stock environment hasn’t been kind, interest rates impact purchasing outcomes, and investor appetite teeters toward profit-making ventures rather than innovation-promising yet profit-lacking platforms. Unlike its competitors, SoundHound is losing favor for not showing tangible profitability or strategic pivots worthy of immediate market confidence.

Through the Wires: Confidence or Concerns?

A few weeks ago, the buzz was all about SoundHound’s partnership talks and speculated technology synergies. That depth of excitement has yet to manifest into financial gains. Where there’s opportunity, the risk follows – and here, it’s the nagging question, is this the bottom or merely the beginning of a prolonged dip?

Investor whisperers believe that for SoundHound to bounce back, it needs to deliver on narratives beyond mere technical advancements. It must create an environment where earnings growth potential and customer adoption take precedence.

Reflections and Conclusion

SoundHound’s present journey calls for introspection amongst its stakeholders. For traders, the current volatility offers a dynamic moment for arbitrage strategies. However, those considering long-term positions must weigh the technological promise against proven financial drive.

Navigating through the disappointment of current numbers, the company’s forward trajectory may yet hold promise, but strategic introspection and clear action plans are urgently needed.

As with all trading endeavors, weigh the opportunity against the risk. The market seems to believe a turnaround is plausible, yet unfounded expectations and passing innovations without profitability could lead to a tougher road ahead. As millionaire penny stock trader and teacher Tim Sykes says, “Consistency is key in trading; don’t let emotions dictate your trades.” In the words of seasoned traders, vigilance and responsiveness to market sentiments are key while facing such trading intricacies.

This is stock news, not investment advice. Timothy Sykes News delivers real-time stock market news focused on key catalysts driving short-term price movements. Our content is tailored for active traders and investors seeking to capitalize on rapid price fluctuations, particularly in volatile sectors like penny stocks. Readers come to us for detailed coverage on earnings reports, mergers, FDA approvals, new contracts, and unusual trading volumes that can trigger significant short-term price action. Some users utilize our news to explain sudden stock movements, while others rely on it for diligent research into potential investment opportunities.

Dive deeper into the world of trading with Timothy Sykes, renowned for his expertise in penny stocks. Explore his top picks and discover the strategies that have propelled him to success with these articles:

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Bryce Tuohey

Mentor and Trainer at StocksToTrade.com, Lead Mentor at Small Cap Rockets and To The Moon Report
Bryce’s first pattern was buying into strength in breakouts. But he noticed when they didn’t work, he took bigger losses. When the OTC market got hot, Bryce learned to dip buy the inevitable panics. He adapted his breakout strategy and now buys consolidation and trend breaks. His goal is to have better risk/reward and get an entry before multi-day listed breakouts.
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In this article (YTD Performance)

  • SOUN-32.36%
    SOUN - NYSESoundHound AI Inc.
    $12.74-0.68 (-5.03%)
    Volume:  51.70M
    Float:  403.20M
    $12.65Day Low/High$13.72

* Results are not typical and will vary from person to person. Making money trading stocks takes time, dedication, and hard work. There are inherent risks involved with investing in the stock market, including the loss of your investment. Past performance in the market is not indicative of future results. Any investment is at your own risk. See Terms of Service here

The available research on day trading suggests that most active traders lose money. Fees and overtrading are major contributors to these losses.

A 2000 study called “Trading is Hazardous to Your Wealth: The Common Stock Investment Performance of Individual Investors” evaluated 66,465 U.S. households that held stocks from 1991 to 1996. The households that traded most averaged an 11.4% annual return during a period where the overall market gained 17.9%. These lower returns were attributed to overconfidence.

A 2014 paper (revised 2019) titled “Learning Fast or Slow?” analyzed the complete transaction history of the Taiwan Stock Exchange between 1992 and 2006. It looked at the ongoing performance of day traders in this sample, and found that 97% of day traders can expect to lose money from trading, and more than 90% of all day trading volume can be traced to investors who predictably lose money. Additionally, it tied the behavior of gamblers and drivers who get more speeding tickets to overtrading, and cited studies showing that legalized gambling has an inverse effect on trading volume.

A 2019 research study (revised 2020) called “Day Trading for a Living?” observed 19,646 Brazilian futures contract traders who started day trading from 2013 to 2015, and recorded two years of their trading activity. The study authors found that 97% of traders with more than 300 days actively trading lost money, and only 1.1% earned more than the Brazilian minimum wage ($16 USD per day). They hypothesized that the greater returns shown in previous studies did not differentiate between frequent day traders and those who traded rarely, and that more frequent trading activity decreases the chance of profitability.

These studies show the wide variance of the available data on day trading profitability. One thing that seems clear from the research is that most day traders lose money .

Millionaire Media 66 W Flagler St. Ste. 900 Miami, FL 33130 United States (888) 878-3621 This is for information purposes only as Millionaire Media LLC nor Timothy Sykes is registered as a securities broker-dealer or an investment adviser. No information herein is intended as securities brokerage, investment, tax, accounting or legal advice, as an offer or solicitation of an offer to sell or buy, or as an endorsement, recommendation or sponsorship of any company, security or fund. Millionaire Media LLC and Timothy Sykes cannot and does not assess, verify or guarantee the adequacy, accuracy or completeness of any information, the suitability or profitability of any particular investment, or the potential value of any investment or informational source. The reader bears responsibility for his/her own investment research and decisions, should seek the advice of a qualified securities professional before making any investment, and investigate and fully understand any and all risks before investing. Millionaire Media LLC and Timothy Sykes in no way warrants the solvency, financial condition, or investment advisability of any of the securities mentioned in communications or websites. In addition, Millionaire Media LLC and Timothy Sykes accepts no liability whatsoever for any direct or consequential loss arising from any use of this information. This information is not intended to be used as the sole basis of any investment decision, nor should it be construed as advice designed to meet the investment needs of any particular investor. Past performance is not necessarily indicative of future returns.

Citations for Disclaimer

Barber, Brad M. and Odean, Terrance, Trading is Hazardous to Your Wealth: The Common Stock Investment Performance of Individual Investors. Available at SSRN: “Day Trading for a Living?”

Barber, Brad M. and Lee, Yi-Tsung and Liu, Yu-Jane and Odean, Terrance and Zhang, Ke, Learning Fast or Slow? (May 28, 2019). Forthcoming: Review of Asset Pricing Studies, Available at SSRN: “https://ssrn.com/abstract=2535636”

Chague, Fernando and De-Losso, Rodrigo and Giovannetti, Bruno, Day Trading for a Living? (June 11, 2020). Available at SSRN: “https://ssrn.com/abstract=3423101”

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