NEW YORK, January 10, 2026, 19:53 EST — The market has closed.
- SoundHound AI finished Friday up, recovering from an early drop sparked by new analyst comments.
- Traders head into Monday watching for follow-through and any CES-linked headlines.
SoundHound AI’s shares jumped 6.7% Friday, closing at $11.75 after hitting a session peak of $12.31. Volume swelled to roughly 39.3 million shares, unusually high for the company’s scale.
That bounce is crucial since SOUN now serves as a fast indicator of risk appetite in smaller AI stocks. With thin trading volume, one note or a fresh demo can swing the stock sharply — up or down.
U.S. markets are closed for the weekend, leaving a simple question: will Friday’s late rally carry over into Monday’s open, or will it fade like these moves often do? The answer tends to come quickly in stocks that can move a dollar or more in a single session.
DA Davidson cut its price target on SoundHound to $14 from $17 on Friday, citing execution risk. The brokerage pointed to the company’s go-to-market strategy as “more complex than expected,” warning that revenue growth could slow across multiple business lines. Earlier Friday, shares fell 1.4% before reversing course. A Reuters Breakingviews note put the median Street target at $16, based on LSEG data. 1
The target cut followed a CES meeting with SoundHound’s CEO Keyvan Mohajer and CFO Nitesh Sharan, according to TipRanks. DA Davidson analyst Gil Luria admitted he’d been “too optimistic” about near-term revenue, as the company juggles scaling several new streams simultaneously, though he maintained a Buy rating. 2
At CES, SoundHound has been pushing its “agentic” voice AI — software designed to handle tasks, not just respond to queries. Simply put, the goal is for a voice assistant to navigate apps on your behalf: placing food orders, reserving tables, or fetching info, all while a driver stays focused on the road.
Options traders jumped in as well. Tiger Brokers highlighted a TipRanks/The Fly note showing 53,232 calls in SOUN—roughly five times the usual volume—with implied volatility climbing to around 71%, reflecting how much big traders anticipate the next move. 3
Competition runs deep. Automakers and device makers can turn to outside suppliers such as SoundHound or Cerence, rely on big-tech assistants, or develop solutions internally. The real game-changer is the sales cycle and integration work—the less flashy but crucial part.
The risk is straightforward: if new product demos fail to convert into signed customers fast enough, the stock could lose its gains. A rollout dragging on longer than expected would strain patience for a company that’s valued more on “what’s next” than on consistent, predictable quarters.
Looking ahead to Monday, traders will be focused on whether SOUN can maintain Friday’s breakout during the opening hour. They’ll also track any shifts in price targets as CES meetings conclude. Details from customers, partners, or the pipeline hitting the tape could carry extra weight.
SoundHound’s next earnings report is due Feb. 26, after the market closes, according to TipRanks. That will be the key moment for fresh guidance and an update on the pace of the company’s revenue growth. 4
