SoundHound AI’s stock price has dropped 29% over the past six months, according to The Motley Fool. The company faces challenges despite reporting record revenues in its first quarter, amid concerns over a pending acquisition.
What happened
SoundHound AI (NASDAQ: SOUN) shareholders have seen a considerable decline in stock value, down approximately 29% over the last six months. Although the company reported its highest revenue ever in the first quarter, worries about its acquisition of LivePerson hindered confidence among investors. The acquisition is valued at $43 million and aims to complement SoundHound’s capabilities in artificial intelligence.[1]
If successful, the integration of LivePerson could revitalize SoundHound’s financial momentum. The company anticipates adding $100 million in revenue by 2027, potentially increasing total revenues between $350 million and $400 million. However, concerns remain about both companies’ profitability, as LivePerson reported a net loss of over $67 million in 2025.
Investors are especially anxious about the method of acquisition, wherein SoundHound plans to pay for LivePerson with stock, leading to shareholder dilution. This strategy may exert short-term pressure but could be justified if the deal creates long-term value.[2]
Why it matters
The value of SoundHound AI hinges on the successful integration of LivePerson. SoundHound currently operates without debt, which provides a favorable financial landscape for the acquisition. However, investor skepticism about profitability poses risks. If LivePerson fails to contribute positively to SoundHound’s earnings, it could undermine the long-term viability of the acquisition.[3]
Background
On May 15, 2026, SoundHound published its Q1 report, revealing record earnings. Despite this achievement, the announcement of the LivePerson acquisition created uncertainty around the stock. As worries about the acquisition’s impact on shareholder value heightened, the stock price experienced a significant decline.
What’s next
The acquisition of LivePerson is expected to close in the second half of 2026, pending regulatory approval and due diligence. Investors will be closely monitoring the developments in this high-stakes situation.
