While the S&P 500 Falls, This $7 Stock Quietly Looks Like a Steal
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By Anders Bylund – Mar 27, 2026 at 3:51PM ESTKey PointsSoundHound AI's stock is down 71% from its October highs, while the company doubled its revenue in 2025.Its voice and agentic AI tools are landing contracts across a wide and growing range of industries.The selloff appears driven by broad market risk aversion, not company-specific problems.SoundHound AI (SOUN 2.81%) is having a rough 2026. The stock is down 71% from its October highs. Short-sellers have piled in, with more than 35% of shares on loan to bearish investors. If you bought at the peak, you're not having fun right now. But here's the thing: SoundHound AI the company is doing fine, even while the stock suffers. Trading below $7 per share as of March 25, it looks like a steal right now. Image source: The Motley Fool. SoundHound AI's business is booming Sales doubled in 2025, as SoundHound AI started converting some of its order backlog into revenue-generating deals. The company inked over 100 deals in Q4 alone. SoundHound AI's voice control tools are rolling out in modern vehicles, drive-through windows, and corporate phone menus. And many of its long-running clients are signing larger contracts already. The recent introduction of generative AI and agentic AI tools increased the platform's value. The balance sheet is clean. SoundHound AI carries virtually no debt and holds $248 million in cash. This is not a company in financial distress. From gyms to government offices Ugly drawdowns can happen when a growth-oriented stock gets caught in a risk-off stampede. SoundHound AI is sinking deep roots into the core sectors of carmakers and restaurants, but it doesn't stop there. The laundry list of recent deals runs the gamut from telecoms and insurance companies to government bureaus and gym chains. Soon enough, you may spend plenty of time talking to the Houndify voice AI system in some unexpected places. ExpandNASDAQ: SOUNSoundHound AIToday's Change(-2.81%) $-0.17Current Price$5.89Key Data PointsMarket Cap$2.6BDay's Range$5.86 - $6.0752wk Range$5.86 - $22.17Volume332KAvg Vol27MGross Margin32.96% Wall Street is missing the point So why the sell-off? Investors have pulled back from risk assets broadly. Names like SoundHound with a beta value above 3 get hit hardest when investor liquidity tightens. High volatility makes it a popular target for short sellers, fueling a feedback loop of downward pressure. But price action isn't the business. And the business looks solid. Sometimes the best opportunities come when the market is too busy panicking to notice. That's what I see in SoundHound AI stock right now.Read NextMar 24, 2026 •By Keith NoonanBigBear.ai vs. SoundHound AI: One Is Surviving the AI Sell-Off.
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This Artificial Intelligence (AI) Stock Could Be Next.Mar 19, 2026 •By Eric VolkmanWhy SoundHound AI Stock Took it on the Chin TodayAbout the AuthorAnders Bylund is a contributing Motley Fool media and technology analyst covering semiconductors, cloud computing, internet infrastructure, quantum computing, and streaming media. Previously, Anders was a systems administrator for Nielsen Technology and CSX, gaining hands-on experience with enterprise-class systems. He was also a freelance writer for Ars Technica, TIME, USA Today, CNN, WIRED, and AOL's Daily Finance. He holds a bachelor’s degree in English and a master’s degree in library and information sciences from Florida State University. He believes in coyotes and time as an abstract.TMFZahrimX@TMFZahrimStocks MentionedSoundHound AINASDAQ: SOUN$5.89(-2.81%)-$0.17*Average returns of all recommendations since inception. Cost basis and return based on previous market day close.