LiveOne LVO shares rallied 15% in the last trading session to close at $5.84. This move can be attributable to notable volume with a higher number of shares being traded than in a typical session. This compares to the stock's 6.5% gain over the past four weeks.
The increase in share price can be attributed to expanding B2B deals and a focus on cost discipline and balance sheet strengthening. In March 2026, the company raised its cost-saving target for 2026 to $7.5 million from $5 million earlier, buoyed by operational efficiency and workforce rationalization. It is leveraging AI to streamline its workforce and costs.
LiveOne recently announced several strategic financial milestones aimed at strengthening its balance sheet. It eliminated over $15 million in short-term liabilities and delivered $13 million in cash savings. Also, the company expanded its stock conversion program to $15 million (at $7.50 per share), out of which it has already completed $8 million.
The company is strategically focusing on expanding its B2B deals, having established significant new agreements and identifying potential partnerships in the pipeline. Strengthening partnerships with platforms like Amazon, Apple and Tesla bode well.
Earlier this month, LVO announced a B2B partnership with LG Electronics. LVO added that it was eyeing the lucrative $100 billion CTV market, where roughly half of the consumers stream audio via smart TVs. LG is one of the well-known names in the smart TV space, shipping about 6-8 million TVs annually.
On the lastearnings call management highlighted that the company is targeting conversion of more than 1 million free and ad-supported users into paid tiers, while leveraging its 65 million-user database to launch proprietary products.
This company is expected to post quarterly loss of $0.30 per share in its upcoming report, which represents no change from the year-ago quarter. Revenues are expected to be $20.28 million, up 5.1% from the year-ago quarter.
Earnings and revenue growth expectations certainly give a good sense of the potential strength in a stock, but empirical research shows that trends in earnings estimate revisions are strongly correlated with near-term stock price movements.
For LiveOne, the consensus EPS estimate for the quarter has remained unchanged over the last 30 days. And a stock's price usually doesn't keep moving higher in the absence of any trend in earnings estimate revisions. So, make sure to keep an eye on LVO going forward to see if this recent jump can turn into more strength down the road.
The stock currently carries a Zacks Rank #3 (Hold). You can see the complete list of today's Zacks Rank #1 (Strong Buy) stocks here >>>>
LiveOne is a member of the Zacks Audio Video Production industry. One other stock in the same industry, Sonos SONO, finished the last trading session 0.8% lower at $14.64. SONO has returned 16.1% over the past month.
For Sonos, the consensus EPS estimate for the upcoming report has remained unchanged over the past month at -$0.04. This represents a change of +77.8% from what the company reported a year ago. Sonos currently has a Zacks Rank of #3 (Hold).
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This article originally published on Zacks Investment Research (zacks.com).
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