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SoundHound AI Faces Insider Sales Amidst Market Volatility

Bryce TuoheyAvatar
Written by Bryce Tuohey Reviewed by Matt Monaco Fact-checked by Bryce Tuohey
Updated 10/18/2025, 12:20 pm ET 10/18/2025, 12:20 pm ET | 4 min 4 min read
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SoundHound AI Inc.’s stocks have been trading down by -7.51% amid heightened market uncertainty and investor apprehension.

Since October 13, 2025, SoundHound AI’s stock price has demonstrated a range of volatility influenced by insider trading activities. Initially priced at $19.27 per share, the stock experienced fluctuations, reaching a high of $21.35 on October 15, only to fall back to $20. This volatility reflects nervousness among investors amidst news of significant insider selling. An in-depth examination of the company’s key financial metrics, support insights into market sentiment:

Technology industry expert:

Analyst sentiment – negative

Market Position & Fundamentals: Soundhound AI (SOUN) is positioned in the technology sector with challenging fundamentals. The company exhibits negative profitability metrics, with an EBIT margin of -175.3% and a net income loss of $74.7 million, indicating significant operational inefficiencies. Their revenue of $84.7 million suggests potential, but the price to sales ratio of 64.39 is substantially above industry norms, flagging overvaluation. The balance sheet provides some strength with a high current ratio of 4.8, but their equity position is strained by retained losses amounting to $887.9 million. These metrics underscore operational challenges amidst the industry dynamics.

Technical Analysis & Trading Strategy: Analysis of recent weekly price patterns reflects significant volatility, with shares opening at 19.27 and achieving highs of 21.11. Notable intra-week swings and a closing dip to 19.2 suggest a bearish trend. Volume patterns indicate declining buying interest, particularly during the breakdown to 19.02. Traders should approach with short-selling bias, observing resistance at the 21.11 level. The actionable strategy involves selling short near immediate resistance levels, and covering on approach to intermediate support around 19.0, aligning with declining volume support.

Catalysts & Outlook: Recent insider transactions, with substantial share disposals by Soundhound’s executives, signal potential internal challenges or perceived overvaluation risks. These actions contrast sharply with sector benchmarks where Technology and Software services often demonstrate insider accumulation. The insider selling aligns with bearish fundamentals, casting doubt on growth prospects. Despite price support at 19.0, a breach would suggest further downside risk. Given these factors, Soundhound appears to have a bearish outlook, with necessary resistance for an upward shift not seen until 21.11 is breached sustainably, though downside pressures are predominant.

These factors, alongside top-level management share sell-offs, indicate potential caution warranted from traders.

Candlestick Chart

Weekly Update Oct 13 – Oct 17, 2025: On Saturday, October 18, 2025 SoundHound AI Inc. stock [NASDAQ: SOUN] is trending down by -7.51%! Discover the key drivers behind this movement as well as our expert analysis in the detailed breakdown below.

Conclusion

The insights divulged from SoundHound AI’s financial disclosures and insider actions necessitate a careful trading approach. With recent trades by key executives revealing a potential distancing from the company, aligning with tumultuous share price movements, the scenario paints a complex picture for current and potential traders. As millionaire penny stock trader and teacher Tim Sykes says, “Cut losses quickly, let profits ride, and don’t overtrade.” To navigate these waters adeptly, traders should stay vigilant on updates regarding corrective financial strategies or noteworthy operational changes which could shift the company’s outlook positively.

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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* 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”