SoundHound AI Slides 5% to Fresh Lows While C3.ai Climbs 4% on Northland Upgrade; UiPath Slips

Agentic software names are splitting apart, and the gap says a lot about how the market grades this group. SoundHound AI (NASDAQ:SOUN) stock is at $5.14, down 5% early in the session and sitting at fresh lows. That leaves SoundHound stock down 48% so far this year.

Meanwhile, C3.ai (NYSE:AI | AI Price Prediction) stock is at $11.98, up 4% after an analyst upgrade. UiPath (NYSE:PATH) stock is at $13.26, down 2%, a smaller slide than the one in SoundHound stock.

Software as a group is lower, with the iShares Expanded Tech-Software Sector ETF (CBOE:IGV) at $111.83, down 0.8%. Large caps are calmer, with the SPDR S&P 500 ETF Trust (NYSEARCA:SPY) virtually unchanged at $778.32. Against that background, the drop in SoundHound stock runs far deeper than the sector fund’s dip, which points to selling aimed at the name itself.

Northland Upgrade Lifts C3.ai on Agentic Build Tool

Northland Capital upgraded C3.ai stock to Outperform from Market Perform, and analyst Mike Latimore lifted the firm’s price target to $16. Latimore pointed to a newly launched development product that lets customers create agentic applications using natural language, with autonomous software handling the build work. In his view, the product can shrink the time to create those applications to days from months.

Faster builds could speed customer onboarding and expansion at existing accounts, according to Latimore. C3.ai’s Q1 FY2027 results showed bookings up 73% quarter over quarter and free cash flow turning positive, though revenue fell 25.5% year over year. Its cash balance of $651.1 million gives the company a deep buffer to fund that push while its turnaround plays out.

SoundHound Keeps Sliding as Its Share Count Grows

SoundHound stock is setting fresh lows. The drop is part of a continuing de-rating, and the company hasn’t issued an announcement of its own to explain the move. The company completed its acquisition of LivePerson on September 4, a stock-funded deal that enlarged its share count. Each new share spreads ownership thinner, and that pressure lands while SoundHound is still reporting losses.

Paying for acquisitions in stock while losses continue asks existing shareholders to fund the growth, skeptics say. At the end of Q2 2026, SoundHound held $202.8 million in cash, while stock-based compensation reached $21.5 million in that quarter. Both figures highlight the dilution question as the combined company scales up.

Supporters see the setup differently. They note that the agentic demand Northland just cited is the same market SoundHound targets, now with a larger installed base from LivePerson to sell to. Growth has also been strong, with SoundHound’s revenue up 45% year over year in Q2 2026. Keyvan Mohajer, SoundHound’s chief executive, stated on the Q2 2026 earnings call, “There is a very high potential turnaround opportunity via this acquisition.”

What to Watch Next

One agentic name rising on an analyst upgrade while another makes fresh lows suggests the market is sorting this group by balance sheet, as C3.ai carries a far larger cash pile than SoundHound, which has leaned on its own shares to fund expansion. UiPath stock and the software fund both show much smaller drops than SoundHound stock, which keeps the pressure focused on one name.

The first set of results that includes LivePerson is the next major checkpoint for SoundHound. That report can show whether the larger installed base lifts revenue faster than it adds to losses. Investors may want to check for whether SoundHound funds its spending with further share sales and consider that dilution risk when deciding how much to own.

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