LivePerson, Inc. (LPSN) is experiencing a notable uptick in its stock price, driven by a combination of positive financial developments and investor sentiment. Recent discussions on Reddit highlight that the company has become free cash flow positive and exceeded expectations, which is seen as a significant milestone. Additionally, the company reported a rise in recurring revenue, with 93% in the third quarter of 2024 compared to 84% in the same quarter of 2023. This improvement is perceived as a potential turning point for the company, allowing it to halt the decline in sales and move towards profitability in the long term.
On Reddit, users are also discussing the potential for a short squeeze, with one user noting, "LPSN is a very good company that could grow a lot in the long term." The sentiment is bolstered by the company's recent debt negotiations, which have extended their financial runway by 12-18 months. This has led to increased optimism among retail investors, who see the stock as undervalued and poised for growth. Despite being early in the trading day, LivePerson's stock has already seen a significant volume of 2,654,577 shares traded, representing 87.38% of its average daily volume. The stock is currently priced at $1.63, marking an 11.60% increase from the previous close of $1.46.