New York, July 6, 2026, 16:03 EDT
- SOUN finished up 6.26% at $6.96, just off the $7 floor in its LivePerson NASDAQ:LPSN deal formula.
- Call volume was 1.8x normal. Traders hit the weekly $7 and $8 calls hardest.
- Analysts still see a big rebound in their targets, but loss estimates for 2026 have grown.
SoundHound AI, Inc. NASDAQ:SOUN jumped 6.26% to finish at $6.96 Monday. Volume hit 28.69 million shares, sitting a bit above its 65-day average. That move outpaced late-session gains in Invesco QQQ Trust NASDAQ:QQQ and iShares Russell 2000 ETF NYSEARCA:IWM, up 1.7% and 0.6% before the close. Trading resumed after Nasdaq’s July 3 Independence Day holiday.
$7 is the key level here. On July 2, SoundHound said in a filing that the LivePerson, Inc. NASDAQ:LPSN stock component will use a 10-day Nasdaq VWAP ending three trading days before close. But there’s a floor at $7 on SoundHound’s stock in the formula, and a cap at $12.
So Monday’s close lines up as a collar test for the deal, not only a spot on the chart. The revised agreement puts the Aggregate Consideration Amount at $42.78 million before any cash shortfall and option tweaks. At $7 a share, that sums to roughly 6.1 million SoundHound shares, or 1.4% of the company’s 432.77 million shares outstanding. If shares move to $12, that drops to around 3.6 million shares.
| Deal price used | Baseline SoundHound shares issued | Share count versus current shares |
|---|---|---|
| $7 floor | 6.11 million | 1.41% |
| Monday close, if below-floor VWAP applied | 6.11 million | 1.41% |
| $12 cap | 3.57 million | 0.82% |
The real deal share count might shift due to shortfall-cash, option moves, and other tweaks detailed in the filing.
If SoundHound trades below the floor, no extra shares come in from this plan. The higher the price goes between $7 and $12, the fewer shares get counted. Shares finished just four cents under the floor, down 68.6% from the 52-week peak at $22.17.
Options activity in SoundHound picked up. Call volume hit 39,921 contracts, about 1.8 times normal, and implied volatility jumped more than six points to 78.40%. The weekly July 10 $7 and $8 calls drew the most action, TipRanks/TheFly said.
Wall Street targets for the stock remain high. According to Zacks data, seven analysts set an average target price at $14.29, with estimates ranging from $9 to $20. TipRanks reported an average target of $12.75 and said the stock held a Strong Buy consensus, with four Buys recorded in the last three months.
With 432.77 million shares out and SoundHound’s 2026 revenue target at $225 million to $260 million, the price targets point to this market-cap-to-sales ratio:
| Reference price | Market value | P/S on 2026 revenue guide |
|---|---|---|
| $6.96 Monday close | $3.01 billion | 11.6x-13.4x |
| $12.75 TipRanks average target | $5.52 billion | 21.2x-24.5x |
| $14.29 Zacks average target | $6.18 billion | 23.8x-27.5x |
| $20.00 Zacks high target | $8.66 billion | 33.3x-38.5x |
SoundHound’s first-quarter revenue jumped 52% to $44.2 million. GAAP gross margin dropped to 31.1% from 36.5%. Adjusted EBITDA was a loss of $26.7 million. The company ended March with $216 million in cash and no debt. SoundHound held its 2026 revenue forecast at $225 million to $260 million.
SoundHound CEO Keyvan Mohajer said in May the company’s top line jumped 52% at the start of the year. CFO James Hom said SoundHound was exiting the quarter with a strong balance sheet.
Zacks said Monday that SoundHound’s forward 12-month P/S sits at 11.25, compared with 11.53 for its industry. The firm also noted SoundHound’s 2026 loss-per-share estimate moved out to 18 cents from 13 cents over the past 60 days. Zacks rates the stock a Rank #4 Sell. C3.ai, Inc. NYSE:AI traded at a P/S of 6.26, and BigBear.ai Holdings, Inc. NYSE:BBAI at 10.95, according to Zacks.
SoundHound said in May that its planned LivePerson buy, OASYS launch, and recent account wins are aimed at boosting its revenue. According to the company, it expects the combined business will see at least $350 million to $400 million in revenue in 2027. At least $100 million would come as expandable business from LivePerson customers. SoundHound expects to finish the deal in the back half of 2026, pending required approvals and conditions.
TipRanks/TheFly said earnings are due Aug. 6. In the meantime, the July 10 weekly $7 and $8 calls offer a last short-term check near the merger floor.
