Shares of LivePerson (LPSN 6.50%) have jumped today, up by 11% as of 3 p.m. EST, amid a broad rally for tech stocks that are recovering after tanking for the past couple of weeks. The Nasdaq Composite is up a whopping 4%, far outpacing the gains in the other major indexes. There is no company-specific news driving LivePerson's move higher.
Growth-oriented tech stocks have been under relentless selling pressure for two weeks due to inflation fears that have spurred a spike in interest rates. After tapping an all-time high of over $72 last month, LivePerson shares had shed roughly 30% of their value through yesterday's close.
The company had reported fourth-quarter results in late February, and the strong showing allowed the stock to temporarily buck the downward trend as the tech sector sell-off was accelerating. Wall Street also cheered the results, with several analysts boosting their price targets in the wake of the release.
While tech stocks are enjoying a blockbuster day, it's unclear whether the rally will sustain itself. The Nasdaq Composite had notched a massive gain last week as well before selling resumed, which is known as a dead-cat bounce. Investors still seem fixated on bond yields, which have been contributing to market volatility. Many pundits have called the sell-off overblown, noting that real interest rates remain negative after factoring in inflation. For example, the real yield on a 10-year Treasury is currently negative 0.62%, according to the Treasury.
LivePerson is forecasting revenue of $103 million to $104 million in the first quarter.