LivePerson Bounces Following Post-Earnings Massacre: A Look At The AI Software Stock

LivePerson Inc LPSN was bouncing up about 6% on Friday after a big bearish day on Thursday caused the stock to plunge a whopping 60%.

The massive decline was in reaction to LIvePerson’s earnings results, which were released after the market closed on Wednesday.

For the fourth quarter, LivePerson reported an earnings loss of 25 cents per share, which beat the consensus estimate of a loss of 35 cents. The company missed on its top line, reporting $122.477 million compared to the $126.96-million estimate.

LivePerson also lowered its revenue estimate for full year 2023 by $70 million.

The news caused several analysts to weigh in on the stock. Read more here.

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The LivePerson Chart: A bounce higher on Friday was the most likely scenario because of how steeply LivePerson fell on Thursday. The drop caused LivePerson’s relative strength index (RSI) to reach the 22% mark, which indicates the stock is heavily oversold.

• LivePerson is trading in a downtrend, with the most recent lower high formed on Wednesday at $9.85 and the most recent lower low printed at the $3.81 mark on Friday. If the stock continues to bounce higher on Wednesday, bearish traders can watch for LivePerson to print a possible bearish reversal candlestick, such as a doji or shooting star candlestick, for a possible entry point.
• Bullish traders want to see LivePerson breakthrough Thursday’s high-of-day to trade up into the gap that exists between $5.02 and $9.11. Gaps on charts fill about 90% of the time, which makes it likely LivePerson will fill the empty range at some point in the future. If that happens in the near term, LivePerson is likely to find resistance at the top of the gap.
• LivePerson has resistance above at $4.97 and $5.52 and support below at $4.22 and $3.74.