SoundHound Stock’s Recent Slump Tests Retail Traders’ Patience, But Analysts See Nearly 40% Upside From Here

SoundHound's stock has seen significant volatility this year despite the company’s deal flow momentum.

•  The average analysts’ price target for the stock is $16.94, according to Koyfin, implying roughly 39% upside from current levels.
• The recent sell-off was accompanied by below-average trading volume, rendering less credibility to the move.
• But some retail traders lament that the stock has tested their patience.

Conversation artificial intelligence (AI) company SoundHound AI, Inc.’s (SOUN) stock is on a three-session losing streak amid market pessimism over AI plays. SoundHound stock tumbled nearly 8% on Thursday amid the broader market sell-off and fell another 2%+ in Friday’s early premarket session.

The lone positive aspect of the recent sell-off is that it was accompanied by below-average trading volume, rendering less credibility to the move.

What Retail Feels About SoundHound Stock

Retail sentiment toward the stock among retailers on the Stockwits platform worsened to ‘neutral’ as of early Friday from the ‘bullish’ mood seen a day ago and the ‘extremely bullish' mood witnessed last week. The message volume also reduced to ‘normal’ levels.

While a bullish watcher said they were buying every dip, another said “rebound incoming.”

Some also rued that the stock was “testing more traders’ patience than its earnings test models.”

But those in the bearish camp said the stock will soon be relegated to the penny territory.

SoundHound Analyst Positive After Q3 Print

Following SoundHound’s quarterly results, Piper Sandler analysts raised their price target to $15 from $12, citing a large IoT win as a notable highlight, the Fly reported. The deal underscores the company's traction with APAC customers, the analysts said. Piper Sandler, however, has a ‘Neutral’ rating on the stock.

H.C.Wainwright analyst Scott Buck recently raised the price target for the stock to $28 from $19 and affirmed a ‘Buy’ rating, according to Barchart.com. The analyst attributed the positive action to his conviction regarding the company’s fundamentals. He blamed the market’s faltering momentum for SoundHound stock’s weakness. 

SoundHound Stock

SoundHound stock has traded within a 52-week range of $5.97 to $24.98. The average analysts’ price target for the stock is $16.94, according to Koyfin, implying roughly 39% upside from current levels.

Among eight analysts covering the stock, five have ‘Buy’ ratings and three rate it as a ‘Hold.’ The short interest in the stock is an elevated 25%, suggesting scope for a short-squeeze rally. 

For the year-to-date period, SoundHound stock is down about 39%.

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