How to trade Soundhound stock: a complete guide

Learn all about Soundhound, with information on the company’s history and share price journey, its share trading hours, and how to trade Soundhound share CFDs with Capital.com.

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What is SoundHound?

SoundHound is a US-based voice AI company specialising in speech recognition and conversational intelligence solutions. Founded in 2005, the company initially gained recognition for its music identification app before expanding into AI-powered voice assistants for businesses across industries like automotive, hospitality, and customer service.

SoundHound stock: key points for CFD traders

• Stock information: SoundHound is listed on the Nasdaq Stock Market and you can trade the SoundHound share price under the ticker SOUN.
• Business model: the company provides AI-driven voice solutions to enterprises, generating revenue through licensing, SaaS subscriptions, and partnerships.
• Market factors: SoundHound’s stock performance is influenced by AI adoption rates, enterprise demand for voice technology, competition in the AI space, and overall tech sector trends.
• Competitors: it competes with companies like Nuance (Microsoft), OpenAI, and Google's voice AI solutions.
• Recent challenges: SoundHound has faced profitability concerns, market volatility in the AI sector, and competition from larger tech firms – all factors that can create trading opportunities.

What is SoundHound’s share price history?

SoundHound’s share price has seen significant volatility since it became a publicly traded company. The AI voice technology firm went public in April 2022 via a SPAC merger, initially trading at around $8 per share. As interest in AI surged, SoundHound attracted investor attention, but its stock has experienced sharp swings due to market conditions and evolving sentiment around AI adoption.

Early growth and AI enthusiasm

SoundHound debuted amid strong excitement around artificial intelligence, particularly in voice recognition and conversational AI. Following its public listing, shares saw early gains as investors speculated on the growing demand for AI-powered voice assistants in industries like automotive, hospitality, and customer service. However, broader market turbulence and concerns about profitability limited its early momentum.

Tech sector downturn and financial concerns

By late 2022, SoundHound’s stock had dropped significantly, falling below $2 per share as tech stocks faced a widespread selloff. Rising interest rates, tightening capital markets, and investor concerns about unprofitable AI companies weighed heavily on the stock. SoundHound also faced scrutiny over its cash burn rate and the challenge of scaling its AI business profitably.

AI resurgence and stock recovery

The explosion of AI investment in 2023, driven by breakthroughs in generative AI and increased enterprise adoption, sparked renewed interest in SoundHound. By mid-2023, its stock rebounded above $4 as the company announced new partnerships and expanded its customer base. The growing demand for AI-driven voice assistants, particularly in the automotive sector, helped improve investor sentiment.

Market volatility and profitability push

Despite the AI rally, SoundHound’s share price remained highly volatile in 2024. Investors continued to weigh the company’s long-term growth potential against concerns over profitability and competition from larger tech players like Microsoft and Google. Efforts to streamline operations and secure new licensing deals provided some stability, with shares hovering between $3 and $5.

Future prospects and industry positioning

Looking ahead, SoundHound’s ability to establish itself as a leader in voice AI will be key to its stock performance. As enterprises increasingly integrate AI-powered voice interfaces, SoundHound aims to carve out a niche in specialised applications. Investors remain watchful of revenue growth, cost management, and broader AI adoption trends that could shape the company’s trajectory.

Past performance is not a reliable indicator of future results.

What factors might affect the SoundHound live share price?

SoundHound’s share price is influenced by various factors, ranging from industry trends in AI to broader economic conditions. Traders should monitor the following key elements:

AI adoption and enterprise demand

SoundHound operates in the rapidly evolving artificial intelligence sector, making its stock highly sensitive to shifts in enterprise AI adoption. Increased demand for voice AI solutions in industries like automotive, hospitality, and customer service can drive investor confidence, while slower adoption rates or skepticism about monetisation could weigh on the stock.

Competitive landscape and partnerships

The AI voice space is highly competitive, with major players like Microsoft (Nuance), Google, and OpenAI offering voice recognition solutions. SoundHound’s ability to secure partnerships with automakers, smart device manufacturers, and enterprise clients is critical. Announcements of new deals or integrations with major brands can boost share price sentiment, while signs of losing market share to larger competitors could apply downward pressure.

Financial performance and earnings reports

Investors closely watch SoundHound’s quarterly earnings for revenue growth, profit margins, and cash flow trends. While the company is focused on scaling its AI licensing and SaaS models, any signs of weaker-than-expected growth, increased costs, or cash burn could lead to stock declines. On the other hand, positive earnings surprises or strong forward guidance can drive rallies.

Broader AI sector trends and sentiment

SoundHound’s stock tends to move in tandem with broader trends in artificial intelligence. Market enthusiasm for AI-related stocks can push shares higher, while sector-wide selloffs or regulatory concerns around AI technology can lead to volatility.

Macroeconomic factors and interest rates

As a growth-focused AI company, SoundHound is sensitive to macroeconomic conditions, particularly interest rate movements. Higher interest rates can make capital-intensive, unprofitable tech firms less attractive to investors, potentially pressuring the stock. Conversely, a more accommodative monetary policy environment could support speculative AI investments.

Regulatory and data privacy considerations

With increasing scrutiny on AI ethics, data privacy, and voice recognition technology, regulatory developments can impact SoundHound’s business. Changes in data protection laws, concerns over AI bias, or government restrictions on AI applications could influence investor sentiment and future growth prospects.

By keeping an eye on these factors, traders can gain insights into potential price movements and market trends affecting SoundHound’s stock.

What are Soundhound’s stock trading hours?

Due to SoundHound being listed on the Nasdaq Stock Market, its stock trades Monday to Friday from 9:30am to 4:00pm (Eastern time), which is 2:30pm to 9:00pm UTC.

If you choose to trade CFDs, you can follow the Soundhound stock performance in real time with the comprehensive Soundhound share price chart.

Monitoring the company’s activity can help you to keep an eye out for any key fundamental or technical events that may affect short-term movements in the share value.

Soundhound trading strategies

You can use basic strategies like trend, breakout, and range trading to navigate Soundhound share price movements. Trend trading follows Soundhound’s broader direction, such as long-term declines driven by shifting consumer spending or upswings after strong earnings. Breakout trading targets price moves beyond key resistance or support, often seen after major company updates. Range trading focuses on Soundhound’s repeated price fluctuations, common when the stock stabilises between earnings reports.

Technical indicators like RSI and MACD help identify trends, while fundamental factors such as earnings results, retail sector performance, and consumer sentiment shifts play a key role. Stay updated on the wider fundamentals with our news and analysis, and learn more about technical analysis.

How to trade SoundHound shares with CFDs

If you want to take a position on SoundHound shares, you have two options. First, you can buy physical shares in the company through the exchange on which it’s listed. Investing in SoundHound stocks means you will own a share, or shares, in the company. This is typically a long-term investment, as you’re hoping for the price to appreciate over time.

Alternatively, you can trade a derivative product such as a contract for difference (CFD) on the underlying Soundhound stock market price, allowing you to speculate on its price movements without actually owning the asset. A CFD is a financial contract between a broker and a trader, where one party agrees to pay the other the difference in the value of the security between the opening and closing of the trade.

Unlike physical share ownership, CFDs allow you to take either a long position (speculating that the price will rise) or a short position (speculating that the price will fall). Since CFDs are commonly used for short-term trading, they offer flexibility in responding to market fluctuations, making them a popular tool for traders looking to capitalise on SoundHound’s stock volatility.

Using leverage

Another key difference between buying physical Soundhound shares and trading through a derivative is the leverage that can be employed with the latter. CFDs are typically traded on margin, which means that a trader has exposure to larger positions with a relatively small outlay. Using this method, both your profits and losses may be amplified, making leveraged trading risky. You can learn how to trade shares in our comprehensive guide to shares trading.

To trade Soundhound stock CFDs with us, just sign up for a Capital.com account, and once you’re verified, you can use our advanced web platform or download our intuitive yet friendly app. It’ll take just a few minutes to get started and access the world’s most-traded markets.

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Why trade Soundhound CFDs with Capital.com?

Trading CFDs with Capital.com means you’ll enjoy an intuitive, easy-to-use platform, 24/7 support, fair and transparent pricing, along with award-winning education to help build your experience in the markets.* You can seamlessly integrate our smart platform with elite third-party software TradingView and MT4, and refine your strategies with our risk-free demo.

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