LivePerson, Inc. (LPSN) saw a significant price increase on December 31, 2024, closing at $1.52, up 12.59% from the previous close of $1.35. The stock opened at $1.83 and reached a high of $2.08 before settling at the close. The trading volume was exceptionally high at 48,167,397 shares, over 23 times the average daily volume, indicating heightened investor interest. The surge was largely driven by retail investor discussions on platforms like Reddit, where comparisons were made between LivePerson's financial metrics and those of SoundHound, suggesting that LivePerson might be undervalued. This speculation was further fueled by the potential for a short squeeze, as over 10% of shares are reportedly shorted, and a notable increase in call options trading activity, which was up 456% compared to the average.
The excitement around LivePerson was also reflected in its performance on the Tel Aviv Stock Exchange, where it saw a 41% increase in trading volume. Despite the bullish sentiment, some investors remain cautious due to the company's financial challenges, including a high debt-to-market cap ratio.