ewsba.se
Written by Anders Bylund for The Motley Fool->
SoundHound AI's Q1 revenue rose 52% year-over-year, beating Wall Street's 47% growth estimate.
Twilio's strong report may have set SoundHound AI's investor expectations too high.
Today's drop may be an overreaction to an otherwise solid earnings report and promising product announcement.
Shares of SoundHound AI (NASDAQ: SOUN) fell as much as 13.3% on Friday morning, following the company's Q1 2026 earnings report. The stock recovered slightly to an 11.5% drop as of 12:15 p.m. ET, erasing most of the gains from the big jump on May 1.
Will AI create the world's first trillionaire? Our team just released a report on the one little-known company, called an "Indispensable Monopoly" providing the critical technology Nvidia and Intel both need. Continue »
Fellow voice-focused AI expert Twilio (NYSE: TWLO) posted a fantastic earnings report at the start of the month, driving SoundHound AI's stock 17% higher as the target market looked red-hot ahead of this financial report.
The results came in well above Wall Street's revenue and earnings targets, as sales rose 52% year over year and net losses held steady at $0.06 per share. The Street consensus had pointed to 47% revenue growth and a $0.10 net loss per share.
The surprise just wasn't big enough to support SoundHound AI's recent price gains.
The bearish market reaction seems unfair. SoundHound AI didn't just exceed financial expectations, but also unveiled a revamped product portfolio with the new OASIS platform.
This system combines the voice-controlled services of SoundHound AI itself and its recent acquisitions, such as the Amelia conversational AI experience, the agentic AI assistance from Interactions, and the Allset food ordering system. The LivePerson buyout is still pending, but its messaging tools will join the OASIS platform later.
Delivering a single, tightly integrated tool for most use cases should help SoundHound AI land more customers, and happier ones. And investors seem to be missing that message today.
As a result, SoundHound AI's stock remains one of my favorite high-growth stocks in 2026. The company isn't profitable yet, but it's converting a huge backlog of long-term orders into actual revenues nowadays. And that's before the refreshed OASIS marketing kicks in.
Before you buy stock in SoundHound AI, consider this:
The Motley Fool Stock Advisor analyst team just identified what they believe are the 10 best stocks for investors to buy now… and SoundHound AI wasn’t one of them. The 10 stocks that made the cut could produce monster returns in the coming years.
Consider when Netflix made this list on December 17, 2004... if you invested $1,000 at the time of our recommendation, you’d have $475,926!* Or when Nvidia made this list on April 15, 2005... if you invested $1,000 at the time of our recommendation, you’d have $1,296,608!*
Now, it’s worth noting Stock Advisor’s total average return is 981% — a market-crushing outperformance compared to 205% for the S&P 500. Don't miss the latest top 10 list, available with Stock Advisor, and join an investing community built by individual investors for individual investors.
*Stock Advisor returns as of May 8, 2026.
Anders Bylund has positions in SoundHound AI and Twilio. The Motley Fool has positions in and recommends SoundHound AI and Twilio. The Motley Fool has a disclosure policy.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
This data feed is not available at this time.