Please ensure Javascript is enabled for purposes of website accessibility

Why LivePerson Stock Jumped Today

By Evan Niu, CFA - Mar 9, 2021 at 3:32PM

You’re reading a free article with opinions that may differ from The Motley Fool’s Premium Investing Services. Become a Motley Fool member today to get instant access to our top analyst recommendations, in-depth research, investing resources, and more. Learn More

The conversational technology communications specialist made gains amid a rally in tech stocks.

What happened

Shares of LivePerson (LPSN 2.72%) 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.

So what

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.

Green and blue stock chart fluctuating

Image source: Getty Images.

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.

Now what

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.

Invest Smarter with The Motley Fool

Join Over 1 Million Premium Members Receiving…

  • New Stock Picks Each Month
  • Detailed Analysis of Companies
  • Model Portfolios
  • Live Streaming During Market Hours
  • And Much More
Get Started Now

Stocks Mentioned

LivePerson, Inc. Stock Quote
LivePerson, Inc.
LPSN
$14.71 (2.72%) $0.39

*Average returns of all recommendations since inception. Cost basis and return based on previous market day close.

Related Articles

Motley Fool Returns

Motley Fool Stock Advisor

Market-beating stocks from our award-winning service.

Stock Advisor Returns
322%
 
S&P 500 Returns
116%

Calculated by average return of all stock recommendations since inception of the Stock Advisor service in February of 2002. Returns as of 05/25/2022.

Discounted offers are only available to new members. Stock Advisor list price is $199 per year.

Premium Investing Services

Invest better with The Motley Fool. Get stock recommendations, portfolio guidance, and more from The Motley Fool's premium services.