Shares of LivePerson (NASDAQ: LPSN) have tanked today, down by 10% as of 3:30 p.m. EDT, amid a broad market sell-off triggered by escalating trade tensions between the U.S. and China that impacted tech more than other sectors. The drop came despite the fact that LivePerson has no business in China and is unaffected by tariffs.
As a digital service provider that facilitates communications and conversations between brands and customers, LivePerson does not import anything from China that would be affected by President Trump's tariffs. Additionally, the company's regulatory filings show that it does no business directly in China. LivePerson operates in the U.S., Israel, Australia, the Netherlands, Japan, and a handful of European countries.
Image source: Getty Images.
However, there are broader concerns that Trump's tariffs represent a major threat to the global economy and could plunge the world into an economic recession. Any worldwide slowdown could potentially hurt LivePerson's customers, which in turn could result in reduced spending. LivePerson notes that no customer represents over 10% of consolidated revenue or accounts receivable as of the end of the second quarter.
Trade tensions are rattling market participants across the board, and LivePerson shares have been trading near 52-week highs after reporting record results earlier this month, making them vulnerable to a sell-off amid souring investor confidence and rising uncertainty regarding broader macroeconomic conditions.
The company is participating in two upcoming investor conferences where it may share more perspective on its prospects: the Oppenheimer Technology, Internet and Communications Conference on Wednesday, followed by a KeyBanc Capital Markets Tech Forum next week.
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This article was originally published on Fool.com