SoundHound AI Shares Fall 3.58% on $640M Volume, Ranks 109th in Daily Trading Amid Voice-AI Sector Volatility

Generated by AI AgentAinvest Market Brief
Monday, Aug 25, 2025 8:40 pm ET1min read
SOUN--
Aime RobotAime Summary

- SoundHound AI’s stock fell 3.58% on August 25, 2025, with $640 million in volume, ranking 109th in daily trading.

- Leveraging a $140B total addressable market, the company’s Q2 revenue surged 29.2% to $42.68M, though GAAP losses and high expenses persist.

- Its stock has gained 151.2% year-to-date, outperforming peers despite a Zacks Rank #3 (Hold).

- A 2022–2025 backtest of high-volume stock strategies showed a 31.52% return, with a Sharpe ratio of 0.79, indicating moderate risk-adjusted performance.

On August 25, 2025, SoundHound AISOUN-- (SOUN) closed down 3.58% with a trading volume of $640 million, ranking 109th in daily activity. The stock’s recent volatility reflects broader market scrutiny amid its position in the high-growth voice-AI sector.

SoundHound is leveraging its $140 billion total addressable market, driven by expanding deployment in automotive, healthcare, and customer service. The company’s Amelia 7.0 AI agents and strategic acquisitions have bolstered its competitive edge. Second-quarter revenue surged to $42.68 million, outpacing estimates by 29.2%, while losses narrowed to 3 cents per share. However, ongoing GAAP losses and elevated expenses remain risks.

The stock has gained 151.2% year-to-date, outperforming its peer group. Despite a Zacks Rank #3 (Hold), investors face a trade-off between growth potential and unprofitability. With 3 billion queries processed quarterly and a revised 2025 revenue outlook of $160–$178 million, SoundHound’s long-term trajectory hinges on execution and sector adoption.

The backtest of a strategy buying top 500 volume stocks and holding for one day from 2022 yielded a 31.52% total return over 365 days, averaging 0.98% daily. The Sharpe ratio of 0.79 highlights reasonable risk-adjusted returns, with peak and trough daily swings of 4.95% and -4.47%, respectively.

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