SoundHound AI, Inc. ( SOUN ) shares are trading lower Friday after the company reported mixed first-quarter financial results on Thursday after the market closed.

SoundHound AI ( SOUN ) shares are sliding. Why is SOUN stock falling?

Q1 Highlights

SoundHound reported an adjusted loss of 6 cents per share, missing the consensus estimate of a 4 cent-loss. In addition, it posted revenue of $44.19 million, beating the consensus estimate of $42.56 million and representing a 52% year-over-year increase.

The company said total cash and cash equivalents were $216 million as of March 31, with no debt.

"Excluding the impact of all acquisitions, revenue was up 88% in our core automotive and IoT AI vertical, highlighting incredible demand across all pillars of our business," said Keyvan Mohajer, co-founder and CEO of SoundHound AI ( SOUN ).

"Our launch of OASYS and our planned acquisition of LivePerson will bring the world's first self-learning agentic AI platform to one of the most robust enterprise footprints in the entire conversational AI sector," Mohajer added.

Guidance

SoundHound affirmed its fiscal-year 2026 revenue guidance of between $225.00 million and $260.00 million, versus the consensus estimate of $232.78 million.

Short-Term Strength Contrasts With Longer-Term Technical Uncertainty

SoundHound is currently positioned above its key short-term moving averages, indicating a bullish sentiment among traders. However, the longer-term trend remains concerning as the 200-day SMA is significantly below the current price, suggesting potential resistance ahead.

With the RSI at 65.23, SoundHound is in neutral territory, which indicates that while momentum is strong, it is not yet overbought. This level suggests that there could still be room for upward movement, but traders should watch for signs of exhaustion.

The MACD is above its signal line, indicating bullish momentum for SoundHound. This suggests that the current trend could continue, but traders should remain vigilant for any shifts in momentum.

Traders should keep an eye on the resistance level at 9.00, as a breach above this level could signal a continuation of the upward trend. Conversely, if the price falls below this level, it may indicate a potential reversal or a shift in market sentiment.

SoundHound has not experienced a golden or death cross recently, but the positioning of the moving averages indicates that the stock is currently in a mixed trend. The 20-day SMA is above the 50-day SMA, which is a bullish sign, but the 50-day SMA is below the 200-day SMA, suggesting caution for long-term traders.

Looking at the 12-month performance, SoundHound has gained 4.79%, which reflects a modest upward trend over the past year. This performance indicates that while there have been fluctuations, the stock has managed to maintain a positive trajectory in the longer term.

SoundHound Shares Fall

SOUN Price Action: SoundHound shares were down 11.94% at $8.48 on Friday, according to Benzinga Pro. Over the past month, SOUN has gained about 22.8% versus 8.2% rise in the S&P 500 and is down roughly 12% year-to-date compared to the index’s 6.7% gain.

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