New Capital
Contrarian, deep value, long/short equity, special situations

LivePerson: The Bearish Side Of The Argument

I am writing this in response to a recent Seeking Alpha article on LivePerson (NASDAQ:LPSN). I believe the author has left out some important considerations, and has misunderstood industry dynamics. I will cover these gaps in my article.

No moat business

First of all, any investor in software companies such as LivePerson should clearly understand that this is a business with no moat and with very low switching costs. Basically, it is a commodity product, where the only competitive advantage can be low cost. Click here to see some of the products available in the market and their comparison. All of them have the same features and provide equal services, the only differentiator being the price. I picked...

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