10 AI News Investors Shouldn’t Miss

6. Five9, Inc. (NASDAQ:FIVN)

Number of Hedge Fund Holders: 29

Five9, Inc. (NASDAQ:FIVN) is a technology company that offers cloud software solutions for contact centers. On December 18, Morgan Stanley raised the firm’s price target on Five9 to $46 from $40 and kept an “Equal-Weight” rating on the shares. According to the analyst, names in communication software suffered for most of 2024. However, there was some improvement in the second half of the year, as per the analyst’s 2025 outlook. The analyst further said that it anticipates the best performers to be those with “accelerating growth stories or extreme FCF support that we think will find outperformance”.

Last month, Five9 reported strong third-quarter results. The company reported a revenue increase of 15% year-over-year, reaching a record $264.2 million. Subscription revenue also grew 20% while operating cash flow was a record $41 million. The company has been capitalizing on the acceleration of AI technologies to augment its CX offerings. However, the stock has been facing headwinds driven by investor concerns about valuation and competition. This has led to a stock decline of more than 40% year-to-date.