Why SoundHound AI Is Falling Again Today -- Is the Stock a Buy Right Now?

SoundHound AI (NASDAQ: SOUN) stock is seeing another big valuation pullback in Tuesday's trading. The conversational artificial intelligence (AI) company's share price was down 5.7% as of 2 p.m. ET and had been off as much as 13.7% earlier in the session.

SoundHound AI is getting hit with big sell-offs after the company revealed that it will be delaying the filing of its annual 10-K report with the Securities and Exchange Commission (SEC). The company's share price is also getting pressured by ongoing investor concerns about macroeconomic and geopolitical risk factors.

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SoundHound said that it was delaying the filing due to complexities involved with its acquisitions of Synq3 and Amelia last year. The delay is raising concerns that the company might have to restate its previously reported results with wider-than-expected losses. The situation is adding another source of uncertainty for the stock's outlook, and investors are selling shares in response. The stock is now down 51% across 2025's trading.

Is SoundHound AI stock a buy on its big pullback?

Macroeconomic and geopolitical risk factors and general valuation concerns have been prompting a substantial retracement for growth stocks this year, and the Nasdaq Composite index is now down more than 5% across the stretch. SoundHound AI's delayed 10-K filing has introduced another bearish catalyst, and the highly growth-dependent stock could continue to see valuation pressures until the filing issue is resolved or the macro picture starts shifting in brighter directions.

On the other hand, investors shouldn't have to wait too long for the company's annual report to be submitted -- as the company says that it will have the report in by March 18. Given the relatively short turnaround, it's possible that the issues SoundHound is looking at are relatively minor. With the conversational AI specialist coming off of a strong beat-and-raise quarterly report last week, risk-tolerant investors might want to treat the pullback as a buying occasion.

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Keith Noonan has no position in any of the stocks mentioned. The Motley Fool has no position in any of the stocks mentioned. The Motley Fool has a disclosure policy.