A Wall Street analyst downgraded SoundHound SOUN, a speech AI recognition business, causing its shares to drop 4.5% in the morning session. over the speech AI and conversational intelligence firm, Piper Sandler changed its recommendation from “Overweight” to “Neutral,” expressing worries over the company’s prospects for the second half of 2025.
Although SoundHound still has long-term potential, the company pointed out that there’s a chance certain transactions may be delayed until 2026. The analyst also emphasised the difficulty SoundHound has in attempting to turn a profit while investing in its product lines, implying that a successful outcome might result in increased payouts and dilution of shares.
Despite keeping its $12 price objective on the stock, Piper Sandler has adopted a more cautious approach. The downgrade presents a more balanced view on the company’s near-term prospects, especially given the stock’s considerable run-up in recent months.
News can cause the stock market to overreact, and significant price declines can offer excellent chances to purchase premium equities. Is it time to purchase SoundHound AI? The shares of SoundHound AI are incredibly erratic; in the past year, there have been 94 swings of more than 5%.
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