SoundHound AI Shares Plummets 2.13% Despite Strategic Partnership Expansion, Ranking 491st in Volume

SoundHound AI (SOUN) closed August 1, 2025, down 2.13% with a trading volume of $260 million, ranking 491st in volume among listed stocks. The decline follows a strategic partnership announcement with Acrelec, a leader in quick-service restaurant (QSR) technology, to deploy voice-enabled drive-thru systems globally. The collaboration integrates SoundHound’s Dynamic Drive-Thru AI with Acrelec’s digital infrastructure, aiming to streamline order processing and reduce labor costs for restaurants. Acrelec’s existing 25,000 drive-thru installations, including McDonald’s and Dunkin’, position the partnership to scale AI adoption in the restaurant sector.

The partnership highlights SoundHound’s focus on expanding its AI solutions beyond existing 10,000+ restaurant deployments. By leveraging Acrelec’s hardware and content management systems, the combined platform aims to enhance operational efficiency while addressing staffing challenges in the QSR industry. SoundHound’s technology, trained on billions of voice queries, is expected to strengthen its market position in AI-driven customer engagement. Analysts note that such partnerships could drive incremental revenue streams amid rising demand for automation in hospitality.

Financial projections indicate SoundHound’s revenue for the current quarter is expected to reach $33.03 million, a 145.4% year-over-year increase. For fiscal 2026, consensus estimates project $211.71 million in revenue, reflecting 30.8% growth. Despite these figures, the stock remains undervalued relative to peers, with a Zacks Value Style Score of F. Earnings estimates for the current quarter and fiscal year show mixed trends, with losses expected to narrow but no material improvement in profitability. The Zacks Rank #3 (Hold) suggests limited near-term momentum compared to broader market performance.

A backtest of a strategy purchasing the top 500 stocks by daily trading volume and holding for one day generated a 166.71% return from 2022 to the present, outperforming the benchmark by 137.53%. The results underscore the potential of high-volume stocks to capitalize on liquidity-driven market movements, though SoundHound’s current volume and earnings trajectory suggest caution for short-term traders.