LivePerson, Inc. (LPSN) saw a significant surge in its stock price on January 3, 2025, closing at $1.66, up 13.7% from the previous close of $1.46. The stock opened at $1.46 and reached an intraday high of $1.87, driven by a remarkable trading volume of 16,311,625 shares, which is over 536% of its average daily volume. This uptick is attributed to positive financial developments, including the company becoming free cash flow positive and reporting a rise in recurring revenue to 93% in Q3 2024 from 84% in the same quarter of 2023. These improvements have sparked optimism among investors, who view these milestones as pivotal for the company's path to profitability.
Investor sentiment on platforms like Reddit has also played a role, with discussions highlighting the potential for a short squeeze and the company's extended financial runway due to recent debt negotiations. This has led to increased interest from retail investors, who perceive the stock as undervalued and poised for growth.