TLDR
- SOUN stock surged 20% on Friday and is up over 40% in the past month ahead of Q1 earnings on May 7.
- Analysts expect Q1 revenue of ~$42.8 million, up 45%+ year over year, with a loss of $0.10 per share.
- Full-year 2026 revenue guidance is set at $225M–$260M, representing 33%–54% growth.
- Short interest stands at 38% of float, fueling short squeeze speculation.
- Analyst consensus is Strong Buy, with an average price target of $14.00 — implying ~46% upside.
SoundHound AI (SOUN) stock jumped 20% on Friday, May 2, bringing its one-month gain to over 40% as investors gear up for Q1 2026 earnings on May 7.
The stock was trading around $9.56 before the Friday spike. At that level, SOUN carries a price-to-sales ratio of 22.94 — well above the sector average of 3.64.
Part of Friday’s move was tied to strong results from Twilio, which reported robust demand for AI voice tools. That gave SoundHound a lift given its focus on voice AI and natural language processing.
But there’s another factor at play. Short interest in SOUN sits at 38% of its float, with days to cover at 7.5. That level of short positioning has traders watching closely for signs of a squeeze.
Short squeezes happen when rising prices force short sellers to buy back their positions, which can push prices even higher. Some are drawing comparisons to Avis and other heavily shorted stocks that saw sharp spikes before reversing hard.
The upcoming earnings report could act as a trigger either way.
What Analysts Expect from Q1
For Q1, the Street is looking for a loss of $0.10 per share, compared to a loss of $0.31 in the same quarter last year. That would mark meaningful progress on the path to profitability.
Revenue is expected to come in at around $42.8 million, up more than 45% year over year.
For the full year, SoundHound is guiding for $225 million to $260 million in revenue — growth of 33% to 54% over 2025.
The company also carries no major debt, which removes one layer of financial risk heading into the report.
What Could Go Wrong
The valuation is the main sticking point. A P/S ratio above 22x leaves very little room for error.
Investors will be watching profitability progress carefully. Any sign that losses aren’t narrowing fast enough could hit the stock hard.
The integration of LivePerson is also on the radar. A stumble there could weigh on sentiment.
Guidance will matter as much as the headline numbers. If management lowers the full-year outlook, expect a sharp reaction.
As of the latest data, five analysts rate SOUN a Buy and one has it at Hold. The average price target of $14.00 implies around 46.4% upside from current levels.
🚨 Our April Stock Picks Are Live!
A new month means new opportunities. Our analysts have just released their top stock picks for April, highlighting companies with strong momentum that rank highly on our KO Score algorithm. We’re also now sharing trade ideas for both long-term and short-term investors, giving you more ways to spot potential opportunities in the market.
Sign up to Knockout Stocks today and get 50% off to unlock the full list and see which stocks made the cut.
Use coupon code Special50 for your exclusive discount!
Get 3 Free Stock Ebooks
Discover top-performing stocks in AI, Crypto, and Technology with expert analysis.
- Top 10 AI Stocks - Leading AI companies
- Top 10 Crypto Stocks - Blockchain leaders
- Top 10 Tech Stocks - Tech giants
