SoundHound AI falls 83% to $4.11; valuation nears record low

SoundHound's slide from a $24.23 closing high in late 2024 to $4.11 reflects how far its valuation had run ahead of the business. At the peak, the stock traded at a price-to-sales ratio above 100, versus 5.8 for the Nasdaq-100 at the time, a wildly overvalued gap.

The operating picture has since shifted. Third-quarter 2026 revenue hit a record $62.4 million, up 48.5% from a year earlier, an acceleration from 45% in the second quarter attributed mainly to LivePerson's revenue being included for the first time after that acquisition closed in September. The GAAP loss narrowed to $46.4 million from $115.9 million a year earlier.

OASYS, the Orchestrated Agent System launched in May, lets enterprises build custom voice agents on SoundHound's speech models or plug in third-party models from OpenAI and Anthropic. A Latin American customer's agent named Alex handles 1,000 phone calls at once and raised inquiries handled by 30%, per SoundHound. Whether the lowered valuation and the path to adjusted profitability pan out is, in the author's framing, a bet that requires a holding period of five years or more.