NEW YORK, July 12, 2026, 18:05 (EDT)
SoundHound AI, Inc. NASDAQ:SOUN enters the new week with 162.9 million shares sold short as of June 30, or 41.3% of its public float, the shares available for trading. Short interest — stock sold by investors betting on a fall and not yet bought back — rose 1.2% from the prior report, MarketBeat data published Friday showed. Its 6.5 “days to cover” means closing those positions would take an estimated 6.5 average-volume sessions. MarketBeat
The stock did not confirm that bearish build. SoundHound closed Friday at $6.64, down 0.6% on the day but 1.4% above its July 2 close. Some 144.1 million shares changed hands from July 6 through July 10, meaning the June 30 short position equaled 1.13 times the entire week’s turnover. Marked at Friday’s price, the position would be worth about $1.08 billion, nearly 38% of the market value implied by the reported share count.
That imbalance can cut both ways. A short squeeze — rapid buying by bearish investors forced to close losing positions — could amplify a rally; weaker company news could deepen a decline. SoundHound traded between $6.37 and $7.09 last week, an 11.3% span, before finishing with a smaller gain than the Nasdaq Composite’s 1.7% advance.
| Company | Friday close | Change from July 2 | Float sold short, June 30 |
|---|---|---|---|
| SoundHound AI NASDAQ:SOUN | $6.64 | +1.4% | 41.3% |
| Cerence Inc. NASDAQ:CRNC | $10.47 | -2.2% | 14.7% |
| C3.ai, Inc. NYSE:AI | $8.95 | -1.2% | 39.1% |
Weekly changes compare the July 10 close with July 2, the last session before the prior weekend. Short-float readings are as of June 30.
Cerence is the closer operating peer, with a heavier focus on automotive voice software; C3.ai is a broader listed enterprise-AI comparison. SoundHound’s short float was almost 2.8 times Cerence’s and slightly above C3.ai’s. TipRanks on Friday listed D.A. Davidson analyst Gil Luria with a Buy rating and $12 target, while noting profitability and execution as near-term challenges; it listed H.C. Wainwright’s Scott Buck at $20, based partly on an expected move to adjusted operating break-even by year-end.
The financial record explains the divide. First-quarter revenue rose 52% to $44.2 million, but adjusted EBITDA — the company’s operating measure before interest, tax, depreciation, amortization and other adjustments — was a $26.7 million loss, wider than $22.2 million a year earlier. SoundHound used $26.3 million of cash in operations and ended March with $216 million in cash and no debt. Excluding acquisitions, “revenue was up 88% in our core automotive and IoT AI vertical,” Chief Executive Keyvan Mohajer said. The company maintained a 2026 revenue forecast of $225 million to $260 million. SoundHound AI
The pending purchase of LivePerson Inc. NASDAQ:LPSN adds another swing factor. A July 2 amended agreement set base aggregate consideration at $42.78 million, subject to LivePerson cash and option adjustments, and uses a 10-day average of SoundHound shares with a $7 floor and $12 cap to determine stock consideration. Since SoundHound finished below $7, the floor would limit the shares issued under that part of the formula if the closing average also remained below $7. The transaction still faces closing conditions and can be terminated if not completed by October 21, with a possible extension to December 5.
But a crowded short does not guarantee a squeeze. The position snapshot was already 10 days old when published, SoundHound remains a cash-burning business, and the LivePerson purchase could be delayed or prove harder to integrate. Using Friday’s close, the reported share count and the midpoint of management’s sales forecast, the stock was valued at roughly $2.87 billion, or 11.9 times expected 2026 revenue. A sales miss or continued margin pressure could cut that multiple before short sellers have reason to retreat.
SoundHound lists no upcoming investor event, leaving next week’s immediate triggers outside the company. June consumer inflation is due Tuesday, July 14, followed by producer prices on Wednesday and retail sales on Thursday, alongside major bank earnings and Iran-related headlines. For a loss-making growth stock, any increase in expected interest rates could carry extra weight. Michael Reynolds, vice president of investment strategy at Glenmede, pointed to “some skepticism around the AI trade” and “a lot of factors coming to a head all at once.” SoundHound AI
