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SoundHound Leadership Sells Shares, Causing Market Stir

Bryce TuoheyAvatar
Written by Bryce Tuohey Reviewed by Matt Monaco Fact-checked by Bryce Tuohey
Updated 11/4/2025, 11:33 am ET 11/4/2025, 11:33 am ET | 4 min 4 min read
SoundHound Leadership Sells Shares, Causing Market Stir Thumbnail

SoundHound AI Inc.’s stocks have been trading down by -7.63 percent with a cautious market reflecting on AI advancements.

Candlestick Chart

Live Update At 11:33:10 EST: On Tuesday, November 04, 2025 SoundHound AI Inc. stock [NASDAQ: SOUN] is trending down by -7.63%! Discover the key drivers behind this movement as well as our expert analysis in the detailed breakdown below.

Quick Financial Overview

SoundHound AI Inc. has experienced significant financial challenges recently. The company’s profitability ratios reveal negative margins, with an EBIT margin of -175.3% and a gross margin of 40.5%. Additionally, financial strength ratios like a current ratio of 4.8 and total debt to equity at 0.01 reflect a solid financial cushion, although the overall business operations are currently facing headwinds.

The revenue stands at approximately $84.69M, but costs remain high, leading to overall losses. The company reported net income of -$74.72M for the most recent period, illustrating the ongoing struggle to balance expenses and revenues. Market perception, given the insider sales, doesn’t entirely signify a lack of faith but may rather suggest tactical financial maneuvering among executives.

Market Reactions

When leaders within a company decide to sell significant amounts of stock, it generally sends ripples through investor circles. With Timothy Stonehocker’s recent action of selling 70,524 shares to the tune of $1.41M, coupled with Majid Emami’s decision to offload 41,167 shares, a mixed signal is sent across the financial spectrum. Some investors view insider selling as a red flag, hinting at potential trouble or a lack of confidence from those closest to the company’s heart. However, there are instances where insider sales are nothing more than personal financial planning. Either way, skepticism persists as the news reaches SoundHound AI’s market players.

The trading pattern indicates fluctuations, with a high of 18.15 and a low of 15.79 over recent sessions. These changes seem to be the result of the collective investor psyche reacting to insider activities, but without solid evidence of ongoing operational issues, interpretations remain mixed. The AI-dominant company has witnessed previously steady volumes now becoming more erratic. Investors might want to tread lightly, mindful of the present volatility linked to executive decisions.

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Conclusion

SoundHound’s current situation showcases a complex narrative of insider sales amid broader market uncertainty. While some executives like Timothy Stonehocker and Majid Emami are strategically adjusting their personal stakes, the picture isn’t as grim as might initially appear. The AI firm boasts robust liquidity aspects despite revenue challenges, yet remains in a stage that demands cautious optimism.

The financial summaries suggest that while there are no significant operational breakdowns, the whispers of caution are resonating amid traders, urged by insider activity. As millionaire penny stock trader and teacher Tim Sykes says, “Cut losses quickly, let profits ride, and don’t overtrade.” This mindset highlights the importance of strategic decision-making in evolving scenarios. As always, the full picture necessitates patience and thorough analysis beyond the surface of fractional insider movements. Traders should keep a close watch on upcoming statements and market feedback to better position themselves in this evolving scenario.

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.

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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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* 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”