SoundHound AI (NASDAQ: SOUN) is back in the spotlight on November 17, 2025, with a flurry of new research notes, technical signals and institutional filings all hitting on the same day.
As of late Monday trading, SOUN stock is around $11.43, down roughly 6% on the session, after trading between about $11.29 and $12.65 and on heavy volume of nearly 30 million shares. [1] That puts the conversational-AI specialist more than 50% below its 52‑week high near $25, and almost 40% lower than a month ago, even after a year of explosive revenue growth and headline-grabbing deals. [2]
At the same time, new coverage today highlights:
- A $269 million cash pile with no debt and record Q3 revenue. [3]
- A bullish broker consensus but a Neutral rating from AI-driven analysis tools. [4]
- A deeply oversold technical profile after a 40% monthly slide. [5]
- Major institutional buying, including a big stake increase from Bank of New York Mellon. [6]
- A fresh rebound call from The Motley Fool, arguing SoundHound could bounce back in 2026. [7]
Below is a breakdown of what today’s SOUN headlines actually say — and how they fit together.
SOUN stock snapshot on 17 November 2025
According to live market data, SoundHound AI shares are trading around $11.43, down about $0.74 (-6.1%) from Friday’s close of $12.17. [8]
Key stats as of today:
- Intraday range: roughly $11.29 – $12.65
- Market cap: about $4.8 billion [9]
- 52‑week range:$5.97 – $24.98 [10]
- Performance: down ~40% over the past month and ~42% year‑to‑date, despite still being up strongly over the last 12 months. [11]
- Volatility: a beta near 2.9, underlining how violently SOUN tends to move versus the broader market. [12]
Technical gauges show how bruising this recent sell‑off has been. Finviz reports a 14‑day Relative Strength Index (RSI) of about 27–28, firmly in “oversold” territory (below 30). [13]
Zacks: record Q3, $269M in cash — but a stretched valuation
A new article today from Zacks, syndicated via multiple outlets, focuses on SoundHound’s unusually strong balance sheet for a high‑growth AI name. The company’s own Q3 2025 report, released November 6, gives the numbers behind that storyline. [14]
Q3 2025 at a glance
From SoundHound’s latest earnings release:
- Revenue: $42.0 million, up 68% year over year. [15]
- Non‑GAAP gross margin: about 59%. [16]
- Non‑GAAP EPS: loss of $0.03 per share, beating consensus expectations for a $0.09 loss. [17]
- GAAP net loss: about $109 million, heavily impacted by non‑cash fair‑value adjustments on acquisition‑related earn‑out liabilities. [18]
- Cash and equivalents:$269 million as of 30 September 2025, with no debt. [19]
Management also raised full‑year 2025 revenue guidance to a range of $165–$180 million, signaling confidence in demand across verticals. [20]
The Q3 report highlights wins across:
- Restaurants: full deployment of voice ordering at chains such as Red Lobster, MOD Pizza, Habit Burger and Torchy’s, plus franchise growth with brands like Firehouse Subs and Five Guys. [21]
- Automotive: new deals with European OEMs, an EV maker, and two‑wheeler brands in India for embedded voice assistants. [22]
- Financial services, healthcare and insurance: expanded deployments of the Amelia agentic AI platform at multiple top‑tier institutions. [23]
- M&A: the acquisition of Interactions, a long‑time player in AI‑driven customer service and workflow orchestration. [24]
Why Zacks still rates SOUN a “Sell”
Despite the impressive growth and cash position, the Zacks piece argues that valuation is the sticking point:
- Zacks estimates forward 12‑month price‑to‑sales around 21.9x, compared with ~16.5x for its industry peers. [25]
- Over the past three months, SOUN shares are down about 18%, underperforming both the broader tech sector and the S&P 500. [26]
- On Zacks’ own ranking system, the stock currently carries a Rank #4 (Sell), reflecting concerns over profitability and valuation despite strong top‑line momentum. [27]
In short: fundamentals look exciting, but Zacks believes investors are paying a steep premium per dollar of revenue.
Brokers lean bullish, AI analysis is cautious
A second Zacks‑authored piece today zeroes in on what traditional Wall Street brokers think of SOUN.
Broker recommendations: “Buy” skew
According to Zacks’ summary of brokerage‑firm recommendations:
- SoundHound’s Average Brokerage Recommendation (ABR) is 1.89 on a 1–5 scale, where 1 is Strong Buy and 5 is Strong Sell. [28]
- That places the stock between “Strong Buy” and “Buy”, based on ratings from nine covering firms. [29]
Zacks also reminds readers that ABR and the Zacks Rank are distinct systems — the former summarizing broker views, the latter a quantitative model heavily driven by earnings revisions.
TipRanks’ AI Analyst: Neutral score, valuation red flags
In contrast, TipRanks’ AI-driven stock analysis tool flashed a more cautious signal on SOUN today. [30]
Key takeaways from the TipRanks article:
- The AI tool gives SOUN a Neutral rating and a score of 48/100, based on an ensemble of models that include OpenAI and other AI engines. [31]
- The AI model’s fair‑value estimate is $13.50, implying only about 11% upside from current levels. [32]
- It acknowledges the same positives:
- Q3 revenue growth of 68%,
- A raised full‑year outlook to $165–$180 million, and
- Positive sentiment on the latest earnings call. [33]
- But it flags several risks:
- An EV/sales multiple near 32.7x, versus about 3.6x for the broader sector — investors are paying roughly nine times the industry average per dollar of sales. [34]
- Persistent net losses, even though Q3’s adjusted loss of $0.03 per share beat expectations for a $0.09 loss. [35]
- Automotive headwinds, where delays and softness in that sector may weigh on near‑term growth. [36]
Interestingly, TipRanks notes that human Wall Street analysts remain more upbeat than the AI:
- The consensus rating is “Moderate Buy”, based on two Buy and four Hold ratings over the past three months.
- The average analyst price target is about $17.20, implying roughly 40% upside from current levels. [37]
So, today’s research flow paints a split view: brokers are broadly bullish, AI models are neutral, and Zacks’ valuation screen is skeptical.
Technicals: SOUN flashes “oversold” after 40% monthly drop
On the technical side, Benzinga published a scan today highlighting 10 “oversold” large‑cap stocks, and SoundHound AI made the list. [38]
From that report:
- The screen looked for market caps over $2 billion, strong average volume, and very low 14‑day RSI readings. [39]
- SOUN’s RSI was 28.08, below the 30 threshold commonly viewed as oversold. [40]
- The article notes SOUN has fallen about 40% in the last month, after trading above $24 in mid‑October. [41]
Finviz’ data backs up that picture, showing:
- Perf Month: –39.9%
- 52‑week high: $24.98 (now more than 50% below that level)
- An RSI around 27–28 and the share price sitting far below its 50‑day moving average near $16.64. [42]
Benzinga stresses that an oversold RSI is not a buy signal on its own, but it can highlight stocks where selling pressure has become extreme and a short‑term bounce is possible if sentiment shifts. [43]
For SOUN, that means today’s weakness comes on top of an already brutal short‑term drawdown — even as fundamentals and institutional flows are moving in the opposite direction.
Big money moves: Bank of New York Mellon nearly doubles its stake
Another piece of news dated November 17, 2025 comes from MarketBeat, focusing on institutional ownership trends in SoundHound AI. [44]
According to the article, based on recent SEC Form 13F filings:
- Bank of New York Mellon Corp increased its position in SOUN by 91.6% in Q2, adding 842,973 shares.
- The bank now holds 1,762,827 shares, or about 0.44% of SoundHound, valued around $18.9 million (at the time of filing). [45]
Other large shareholders highlighted include:
- Vanguard Group, which boosted its stake by 9.5% to roughly 35.1 million shares, worth about $285 million. [46]
- Mirae Asset Global ETFs, Goldman Sachs Group, Nuveen, and Cubist Systematic Strategies, all of which either initiated or increased positions earlier this year. [47]
MarketBeat estimates that hedge funds and other institutional investors together own about 19% of the stock, though other data providers put overall institutional ownership higher when ETFs are included. [48]
The key takeaway: while retail and momentum traders have been selling into the recent slide, large asset managers have been quietly adding exposure. 13F filings are lagging, but they show that some long‑term money has been willing to buy the dip in prior quarters.
Growth narrative: why some see a 2026 rebound
The third big narrative today is more forward‑looking. A new Motley Fool article titled “Prediction: 1 Growth Stock Set to Bounce Back Next Year” singles out SoundHound AI as its featured pick. [49]
Because the full article is behind a partial paywall, the publicly available summaries give just the broad strokes:
- The author argues that 2025 has been a painful year for SOUN shareholders, but that the business momentum points to a potential rebound in 2026. [50]
- The bullish case leans heavily on:
- Rapid revenue growth (Q3’s 68% jump),
- Raised guidance to $165–$180 million in 2025 revenue, and
- The expanding scope of SoundHound’s agentic AI platform, which now stretches across automotive, restaurants, IoT, healthcare and financial services. [51]
That narrative echoes a broader cluster of recent bullish commentary, including pieces such as “Massive News: SoundHound AI Just Raised Its Outlook” and “Where Will SoundHound AI Stock Be in 3 Years?”, which emphasize: [52]
- The company’s growing roster of blue‑chip partners. [53]
- The potential for high‑margin, recurring software and transaction revenues as deployments scale. [54]
In other words, today’s bullish pieces are less about what the stock is doing now and more about the earnings power investors hope to see by 2026 and beyond.
How today’s headlines fit together for SOUN stock
Putting all of November 17’s SOUN news into one picture:
The bullish column
- Balance sheet strength
- $269 million in cash, no debt, and the flexibility to keep investing in R&D, infrastructure and acquisitions even if markets stay choppy. [55]
- Hypergrowth and raised guidance
- 68% revenue growth in Q3 and higher full‑year revenue targets suggest demand remains strong across sectors. [56]
- Broker and human‑analyst optimism
- Oversold technical setup
- RSI near 27–28 and a ~40% one‑month decline have pushed the stock into oversold territory, opening the door for a potential relief rally if sentiment turns. [59]
- Institutional accumulation
- Major players like BNY Mellon, Vanguard and others have materially increased their holdings over recent quarters. [60]
The risk column
- Rich valuation on sales
- EV/sales over 30x and forward price‑to‑sales near 22x make SoundHound far more expensive than many peers on a revenue basis. [61]
- Ongoing losses and cash burn
- Even on a non‑GAAP basis, the company posted a Q3 net loss and negative adjusted EBITDA, and longer‑term metrics still show sizable cumulative losses. [62]
- Sector and execution risk
- High volatility
- With a beta near 3 and a history of big swings around news, SOUN is not a low‑risk stock — drawdowns like this month’s 40% slide are part of the package. [65]
What today means if you’re watching SOUN
For traders and investors following SoundHound AI, November 17, 2025 delivers a very clear message:
- The business story is getting stronger – record revenue, a fat cash cushion, expanded guidance and marquee customers across multiple industries. [66]
- The stock, however, is caught between hype, valuation concerns and rising expectations, leading to violent swings and diverging opinions between different types of research (brokers, quant models and AI tools). [67]
If you’re following SOUN, the key things to watch after today’s news are likely to include:
- Path to profitability and cash‑flow improvements, not just revenue growth.
- How quickly new deals ramp into recurring revenue, especially in high‑value verticals like financial services and healthcare. [68]
- Whether oversold technicals unwind via a short‑term bounce or further downside, especially relative to the 50‑day and 200‑day moving averages. [69]
- Future 13F filings showing whether today’s institutional appetite continues or reverses. [70]
As always, this coverage is informational only and not investment advice. SoundHound AI has quickly become one of the most closely watched names in conversational and agentic AI — and after today’s barrage of headlines, SOUN will likely remain a high‑beta battleground between growth optimists and valuation skeptics.
References
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