5 Best AI Stocks To Buy Now

2. Five9, Inc. (NASDAQ:FIVN)

Market Capitalization as of September 5: $6.41 billion

Number of Hedge Fund Holders: 51

Five9, Inc. (NASDAQ:FIVN) was incorporated in 2001 and is headquartered in San Ramon, California. The company provides cloud software for contact centers in the United States and internationally. Five9, Inc. (NASDAQ:FIVN) leverages artificial intelligence to automate common tasks. Five9 Intelligent Virtual Agent and Agent Assist are two conversational AI solutions that lower costs while boosting productivity. 

After beating market estimates on Q2 results, the company raised its FY 2022 revenue forecast to a range of $780.5 million to $782.5 million, versus the earlier guidance of $770 million to $773 million. The consensus revenue estimate is $772.17 million. Five9, Inc. (NASDAQ:FIVN) now sees FY 2022 non-GAAP EPS of $1.38 to $1.40, versus a prior EPS range of $1.22 to $1.24. The consensus EPS estimate is $1.23. The upbeat guidance makes Five9, Inc. (NASDAQ:FIVN) one of the best AI stocks to buy. 

On August 15, Deutsche Bank analyst Matthew Niknam initiated coverage of Five9, Inc. (NASDAQ:FIVN) with a Hold rating and a $120 price target. While he sees Five9, Inc. (NASDAQ:FIVN) having “robust growth potential” in the “meaningfully under penetrated” total addressable market for cloud-based contact center software, as well as a possibility for significantly rising margins, the analyst contended that the stock is “a premium one, but so is valuation”. Regardless of his Hold rating, the analyst contended that his 2023 and 2024 estimates are above consensus.

According to Insider Monkey’s Q2 data, 51 hedge funds were bullish on Five9, Inc. (NASDAQ:FIVN), compared to 52 funds in the last quarter. Christopher Lyle’s SCGE Management is the biggest stakeholder of the company, with 1.5 million shares worth $140.2 million. 

Here is what ClearBridge Investments has to say about Five9, Inc. (NASDAQ:FIVN) in its Q1 2021 investor letter:

“Five9 is a cloud-based contact center as a service software provider that is replacing aging on-premise legacy solutions that dominate the installed base. Companies are being forced to modernize and cloud penetration is still low; Five9 is positioned to benefit and should see further growth driven by its cross-selling add-on modules and an AI product that generates high revenue.”