What Happened to LivePerson’s Stock Price Today?
- Shares of AI-powered conversational commerce technology company LivePerson (NASDAQ:LPSN) popped after the company reported very strong first-quarter numbers, with LPSN stock rising more than 5%.
- Despite the post-earnings pop, LivePerson stock is still 30% off its mid-February highs, as the tech sector meltdown as significantly weighed on this high-growth stock.
LPSN Earnings: Reading the Fine Print
- LivePerson’s first-quarter numbers were great, as was its forward guidance.
- Revenues topped expectations by 4%, and rose an impressive 38% year-over-year.
- Earnings topped expectations by even more, paced by an incredible improvement in profit margins thanks to positive operating leverage on top of the big revenue growth rate.
- Second-quarter revenues were guided ahead of expectations. Full-year revenues were guided above consensus, too.
- Importantly, the company signed a flurry of seven-figure contracts in the quarter, and annual contract value in Q1 rose 120% year-over-year — an important indicator of healthy revenue growth momentum in the coming quarters.
- Indeed, LivePerson’s revenue growth is expected to accelerate in 2021 — not decelerate — an important milestone considering that 2020 was a breakout year for the company.
- Overall, it appears the company is firing on all cylinders today.
What This Means for LPSN Stock Going Forward
- LPSN stock has been weak, partly because we’ve seen a bunch of technology-focused “pandemic winners” talk about a growth slowdown in early 2021.
- But not LivePerson … LivePerson won big during the pandemic, because everyone shifted into online retail and, by extension, some adopted conversational commerce tools.
- The company is still winning big as the pandemic fades, and indeed, is winning even more now because consumers are shopping more and retailers are investing more in their conversational commerce capabilities.
- This means the recent meltdown in LivePerson stock is entirely unwarranted.
- Bottom Line: It’s time to buy the dip.
LPSN Stock Price Forecast
- LivePerson is the technology backbone of an enormous shift toward AI-powered conversational commerce, wherein annoying customer service calls and confusing online shopping experiences become a thing of the past.
- The company has a very bright future. One day, every retailer in the world will lean into conversational commerce tools, and most will build their chatbots on top of LivePerson technology.
- Considering this enormous long-term growth potential, LPSN stock is undervalued today.
- Our numbers indicate this stock is worth at least $80 today. And a run to $100 looks likely over the next 12 months.
LivePerson is the exact type of stock we like to invest in for the long-haul. A still small company, that a lot of folks don’t know about yet, but which is sitting on a breakthrough technology in a emerging investment megatrend that will one day redefine how consumers go about their daily lives.
These early-stage “world changers” — as we like to call them — represent potential 10X investment opportunities, and are the best way to score huge returns in the stock market.
LPSN stock is one of them. But it’s just one. We think we’ve identified over 40 similar 10X potential opportunities in early-stage, world-changing technology stocks — and we’ve put all of them into a single investment portfolio in our venture-capital-style, exclusive research platform, Innovation Investor.
To get the names, ticker symbols, and key business details of those potential 10X winners, subscribe to Innovation Investor here.
On the date of publication, Luke Lango did not have (either directly or indirectly) any positions in the securities mentioned in this article.
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