If you’ve been tracking the chaotic world of AI stocks lately, you’ve probably noticed that SoundHound AI (SOUN) is having a bit of a moment. Honestly, it’s one of those stocks that makes you tilt your head. One day it’s the darling of the retail crowd, and the next, it’s getting hammered by valuation skeptics. As of January 13, 2026, the price of SoundHound stock closed at $11.08, down about 4.2% for the day.
It’s a weird spot to be in.
We’re seeing a classic tug-of-war between the "this is the future of voice" believers and the "show me the profit" crowd. Just a few days ago, the stock was riding high near $11.75, buoyed by some pretty flashy announcements at CES 2026. But like a lot of high-beta tech plays, it’s prone to these sudden pullbacks. You’ve basically got a company with a market cap around $4.65 billion that still hasn't turned a GAAP profit, which makes every price swing feel a little more dramatic than it probably should be.
What’s Actually Driving the Price of SoundHound Stock?
Prices don't just move in a vacuum. For SoundHound, the current narrative is all about "Agentic AI." If you're not into the technical jargon, it basically means AI that doesn't just talk to you, but actually does stuff.
At CES 2026, the company showed off its Amelia 7 platform. This isn't just a voice assistant that tells you the weather; it’s an agent that can book a table via OpenTable or pay for your parking through Parkopedia while you’re driving. That kind of real-world utility is exactly why analysts like H.C. Wainwright are still pounding the table with a $26 price target. They see a world where every car and kitchen appliance has a "SoundHound Inside" sticker.
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But then you have the other side of the coin.
- The Valuation Gap: Even with the stock trading around $11, it’s not exactly "cheap." It’s trading at a price-to-sales ratio that would make a value investor faint.
- The Profitability Clock: Management says they’ll hit adjusted EBITDA profitability by the end of 2026. That’s a big "if" that the market is currently pricing in with a lot of skepticism.
- Insider Selling: Just this past week, CTO Timothy Stonehocker sold nearly 30,000 shares at about $12.00. While insiders sell for plenty of reasons—buying a house, taxes, diversifying—it always gives the market a reason to pause.
The 52-Week Rollercoaster
To understand where we are, you have to look at where we’ve been. In the last year, SoundHound has swung from a low of $6.52 to a high of $22.17.
When you’re sitting at $11.08, you’re essentially right in the middle of that range. It’s a consolidation zone. Investors are waiting for the next catalyst, which is likely the February earnings report. Zacks currently has the stock at a Rank #4 (Sell), mostly because they’re worried about the broader IT services sector and the company’s near-term earnings revisions. On the flip side, the consensus price target among 10 major analysts is closer to $16.07. That’s a massive disconnect.
Why the "January Effect" Matters for SOUN
Have you ever heard of the January Effect? It’s this market phenomenon where small-cap and beaten-down growth stocks tend to rally in the first few weeks of the year. Investors sell their losers in December for tax harvesting and then buy them back in January.
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SoundHound definitely felt that. The stock climbed roughly 12% in the first few days of 2026.
It’s a bit of a psychological game. People want exposure to AI, but they’re tired of paying the massive premiums for Nvidia or Microsoft. So they look for the "pure plays"—companies whose entire existence is tied to AI. SoundHound fits that description perfectly. They’ve got zero debt and about $269 million in cash as of their last major filing. That gives them a "runway," but it’s not an infinite one.
The Bull vs. Bear Debate
If you’re trying to decide if the current price of SoundHound stock is a steal or a trap, it really comes down to your timeline.
The Bull Case: SoundHound is diversifying. They aren't just relying on one or two big customers anymore. In fact, no single customer accounted for more than 10% of their revenue in recent quarters. Their partnership with NVIDIA to run AI on the edge (directly on car chips) is a huge technical win. If they hit that $231 million revenue target for 2026, the current price might look like a bargain in hindsight.
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The Bear Case: Revenue growth is great, but the net losses are still heavy. We’re talking over $100 million in GAAP losses in some quarters. If the "AI hype" starts to cool off or if a recession actually hits, these are the types of stocks that get sold off first. Also, competition is fierce. Every big tech company is trying to win the voice interface war.
What to Watch Next
The next few months are going to be telling. Keep an eye on the "Vision AI" rollout. This is SoundHound’s attempt to let cars "see" and "talk" at the same time—think of a car that can see a restaurant out the window and tell you what’s on the menu. If that gains traction with major automakers like Stellantis or Hyundai, the stock could easily break out of this $11 range.
For now, the price of SoundHound stock is essentially a bet on the "Agentic" future. It’s volatile, it’s loud, and it’s definitely not for the faint of heart. If you're looking for stability, this isn't it. But if you're looking for the company that might actually make "talking to your car" a useful experience instead of a frustrating one, SoundHound is the one to track.
Practical Steps for Investors
If you're looking to act on this information, start by checking the Relative Strength Index (RSI) for SOUN; it’s recently hovered around 48, which suggests it isn't overbought or oversold yet.
- Monitor the $10.50 Support Level: Historically, the stock has found buyers when it dips toward the $10.00 - $10.50 range. A break below that could signal more pain.
- Watch the Volume: Pay attention to whether price moves are happening on high volume. The average volume is around 30 million shares; anything significantly higher during a price drop suggests institutional selling.
- Check the Earnings Date: Mark late February on your calendar. That’s when the company will likely provide its full-year 2026 guidance, which will be the real test for management’s "profitability by year-end" promise.
Ultimately, the market is currently giving SoundHound a "Moderate Buy" rating, but the wide range in price targets—from $11 all the way to $26—shows just how much disagreement there is about what this company is actually worth.