Short Squeeze And Earnings: Why SoundHound AI Stock Spiked Thursday

SoundHound AI Inc. (NASDAQ: SOUN ) stock surged more than 26% in Thursday’s premarket session after the conversational AI company reported stronger-than-expected second-quarter results and raised its full-year 2026 revenue guidance. The rally was likely fueled by a short squeeze, with 42.35% of SoundHound AI’s public float, or about 169.2 million shares, sold short. The elevated short interest suggests a large number of investors were betting against the stock, forcing some to cover their positions as shares surged. SoundHound AI Q2 Results Beat Expectations Revenue increased 45% year over year to $61.9 million, topping the analyst consensus estimate of $52.39 million. The company attributed the growth to strong demand across enterprise AI, healthcare, automotive, financial services, technology and other end markets. SoundHound reported an adjusted loss of 2 cents per shar...