LivePerson, Inc. (LPSN) is experiencing a surge in pre-market trading, driven by heightened interest from retail investors and discussions on platforms like Reddit. A significant factor contributing to the excitement is the comparison of LivePerson's financial metrics with those of SoundHound, another company in the AI sector. Reddit users have pointed out that LivePerson's revenue of $300 million and market cap of $120 million make it appear undervalued compared to SoundHound's $84 million revenue and $8.3 billion market cap. This has led to speculation that LivePerson could see a substantial price increase, with some users predicting a 3-4x rise this week, targeting a price range of $4.75 to $5.50.
Additionally, the stock's potential for a short squeeze is being highlighted, with over 10% of shares reportedly shorted. This, combined with a small float, has fueled expectations of explosive price movements. The options market is also showing bullish activity, with a significant increase in call options trading, further adding to the speculation of a potential squeeze. Despite the enthusiasm, some users caution about the company's financial challenges, including a high debt-to-market cap ratio, which could pose risks if not addressed by the new management.
LivePerson's stock is currently trading at $1.57, marking a 16.30% increase from the previous close of $1.35.