Morgan Stanley’s 5 Stock Picks for 2023

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1. Five9, Inc. (NASDAQ:FIVN)

Share Price Upside: 61%
Number of Hedge Fund Holders: 45

Together with its subsidiaries, Five9, Inc. (NASDAQ:FIVN) provides intelligent cloud software for contact centers. It offers a virtual contact center platform that delivers applications that enable contact center-related customer service sales and marketing functions.

In a research note to investors, Morgan Stanley reiterated that Five9, Inc. (NASDAQ:FIVN) is one of the software winners amid the AI revolution. The technology will enhance the company’s call and contact center services. Five9, Inc. (NASDAQ:FIVN) boasts an average price target of $92.67, implying a 61% upside potential.

At the end of Q2 2023, 45 hedge funds were eager on Five9, Inc. (NASDAQ:FIVN), compared to 41 in the previous quarter. Of those, Sylebra Capital Management was the largest shareholder in the company and disclosed a position worth $210.73 million.

In its Q2 2023 investor letter, ClearBridge SMID Cap Growth Strategy provided the following insight regarding Five9, Inc. (NASDAQ:FIVN):

“Stock selection in the IT sector was the leading detractor from relative performance during the second quarter. Customer reticence to commit to incremental seats/contract duration or new products during the macro slowdown is understandable and predictably weighed on companies across the sector but was particularly detrimental to software providers such as Five9, Inc. (NASDAQ:FIVN), which provides cloud-based software for call centers as well as Wix.com, which operates a cloud-based platform for website creation and applications. While we made the decision to exit Five9 during the quarter over concerns surrounding the possible headwind posed by AI development and integration, we continue to have high conviction in our IT companies.”

Follow Five9 Inc. (NASDAQ:FIVN)

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