SoundHound AI Inc. (SOUN) stock is trading lower on Monday, extending last week's losses. The stock has declined 14.57% over the past five trading sessions.

The selloff comes as technology stocks face broader pressure. The Nasdaq is down 0.51%, while the S&P 500 is up 0.02%. Technology is the day's worst-performing sector, falling 1.1%.

SoundHound's market capitalization has also shrunk significantly, dropping from more than $8.79 billion in December 2024 to approximately $2.39 billion.

LivePerson Acquisition Raises Integration Concerns

The weakness follows SoundHound's $43 million acquisition of LivePerson.

The deal aims to combine SoundHound's voice and agentic AI capabilities with LivePerson's digital messaging technology through its OASYS platform.

However, the acquisition adds integration risks as SoundHound continues to report substantial losses.

Meanwhile, second-quarter revenue grew 45% year over year, marking a slowdown from previous quarters.

Management forecast annual revenue of $230 million to $260 million. The company expects revenue to exceed that range once LivePerson's contributions are included.

Technical Analysis

SoundHound remains in a bearish trend, trading 13.4% below its 20-day simple moving average (SMA) of $5.86 and 33.4% below its 200-day SMA of $7.63.

A death cross formed in January, when the 50-day SMA fell below the 200-day SMA, signaling longer-term weakness.

Meanwhile, the relative strength index (RSI) stands at 26.70, indicating oversold conditions. Although this could support a short-term rebound, selling pressure may persist.

The stock faces immediate resistance near $5.86, while its previous 52-week low area around $5.36 could act as resistance following the breakdown below that level.

Analyst Outlook

SoundHound carries a consensus Buy rating, with an average price forecast of $9.33.

Piper Sandler maintained a Neutral rating and lowered its price forecast to $6 on Sept. 22. DA Davidson maintained a Buy rating but reduced its forecast to $10 on Aug. 6.

SOUN Price Action

SoundHound AI shares were down 5.75% at $5.08 at the time of publication Monday, according to market data.