SoundHound SOUN’s stock dropped 4.5% in the morning session following a Wall Street analyst’s downgrading of the voice AI detection startup. Piper Sandler downgraded its rating from “Overweight” to “Neutral,” citing worries over the company’s prospects for the second half of 2025.
The company pointed out that although SoundHound still has long-term potential, there is a chance that some partnerships would be delayed until 2026. Additionally, the analyst emphasised SoundHound’s difficulties in attempting to turn a profit while investing in its product lines, implying that success would result in increased payouts and dilution of shares.
Despite keeping the stock at its $12 price objective, Piper Sandler has adopted a more cautious approach. Particularly in light of the stock’s notable surge in recent months, the downgrade presents a more impartial assessment of the company’s near-term prospects.
Large price declines can offer excellent chances to purchase premium equities, and the stock market overreacts to news. Should I get SoundHound AI now? Over the past year, SoundHound AI’s shares have had 94 swings of more than 5%, making them very volatile.
Also Read:
Top 10 Global Women in Business for 2025 – Women’s Day Edition
