Is SoundHound (SOUN) an AI Bubble Stocks to Short Now?
Key takeaways
- Is Sound Hound (SOUN) an AI Bubble Stocks to Short Now?
- During the fiscal first quarter of 2026, the company posted $44.2 million in revenue, reflecting a 52% year-over-year increase, and topped Wall Street’s expectation of $42.56 million.
- However, the profitability remained weak as SoundHound posted a GAAP net loss of $25 million and an adjusted EBITDA loss of $26.7 million.
Is Sound Hound (SOUN) an AI Bubble Stocks to Short Now? Talha Qureshi Mon, June 8, 2026 at 11:15 PM GMT+7 2 min read SOUN RDDT Sound Hound AI, Inc. (NASDAQ:SOUN) is one of the AI Bubble Stocks to Short Now According to Reddit. Sound Hound AI, Inc. (NASDAQ:SOUN) is among some of the most shorted stocks with a short float exceeding 38%. The stock has declined more than 16% since the release of fiscal Q1 2026 earnings on May 7. However, the Street continues to see significant upside, as 8 out of 10 analysts covering the stock have a Buy rating and the 12-month average price target reflects more than 67% upside from current levels.
During the fiscal first quarter of 2026, the company posted $44.2 million in revenue, reflecting a 52% year-over-year increase, and topped Wall Street’s expectation of $42.56 million. The EPS of negative $0.06 also fell short of the negative $0.03 consensus. Management noted the quarter to be strong, as excluding acquisitions, core automotive and IoT AI revenue surged 88%, reflecting organic demand across its key verticals.
However, the profitability remained weak as SoundHound posted a GAAP net loss of $25 million and an adjusted EBITDA loss of $26.7 million. Gross margins were also impacted by one-time vendor charges during the quarter, although management flagged these as non-recurring.