Here's a story about cutting costs that would make even the most frugal CFO blush. LiveOne Inc. (LVO), the Los Angeles-based music and entertainment platform, announced Wednesday that it has rolled out Claude and other proprietary AI tools to trim operating expenses by an additional $5 million since December. That's not a typo—$5 million in savings in just a few months, all thanks to the magic of artificial intelligence.

But the AI push is just part of the story. The company has been swinging the axe in more traditional ways too, reducing headcount from 350 to 84 employees. That's right—they went from a small army to what amounts to a couple of basketball teams. The company cut more than 12% of its remaining workforce this quarter alone as part of what it calls a "broader restructuring plan to improve efficiency and operating leverage."

CEO Robert Ellin said the company is taking "decisive actions" to streamline costs, reinforce the balance sheet and drive sustained profitability. When you're cutting three-quarters of your staff and millions in expenses, "decisive" seems like an understatement.

The financial engineering doesn't stop there. LiveOne also eliminated about $14 million in liabilities, repaying $3 million in debt and converting over $11 million into equity at $7.50 per share. That's the kind of balance sheet cleanup that makes accountants sleep better at night.

Short-Term Momentum vs. Long-Term Pain

Now, let's talk about the stock, because this is where things get interesting. Over the past 12 months, LiveOne's stock price has declined by 31.17%. That's the kind of performance that usually sends investors running for the hills.

But here's the twist: currently, the stock is trading 13.8% above its 20-day simple moving average of $4.83 and 17.5% above its 100-day SMA of $4.68. It remains 4.4% below its 200-day SMA of $5.75, but those shorter-term numbers suggest a bullish trend might be developing. It's like the stock has a split personality—long-term bearish, short-term bullish.

Looking Ahead to 2026

The next major catalyst for the stock arrives with the June 17, 2026, earnings report. Yes, you read that right—2026. We're talking about forecasts way out in the future here.

Analysts expect the company to report a loss of 36 cents per share, which would actually be an improvement from the loss of 80 cents per share a year earlier. Revenue is expected to come in at $20.25 million, up from $19.29 million year-over-year. So the story is: still losing money, but losing less of it while making slightly more revenue.

Despite the challenges, the stock carries a Buy Rating with an average price target of $25.60. That's nearly five times where the stock trades today. Roth Capital maintains a Buy rating but lowered its target to $13.00 back in September 2025.

The Market's Verdict

Market data shows LiveOne shares were flat at $5.430 at the time of publication on Wednesday. The stock's momentum score of 13.37 indicates it's significantly underperforming the broader market, suggesting that despite today's cost-cutting news and short-term technical signals, the company still faces challenges in winning over investors.

So what do we make of all this? LiveOne is doing what many struggling companies do—cutting costs aggressively, reducing headcount dramatically, and cleaning up the balance sheet. The AI angle adds a modern twist to an old story. Whether this translates to sustained profitability and stock price recovery remains to be seen, but the company is certainly giving it the old college try. Or, more accurately, the old AI-and-layoffs try.