What Happened:
Shares of call center software provider Five9 (NASDAQ: FIVN) jumped 5.41% in the morning session after Mizuho analysts initiated coverage on the stock with a Buy rating and a price target of $100. In a note to investors, the analysts highlighted that AI is a positive catalyst, not a negative disruptor, for the Five9 business model.
What is the market telling us:
Five9's shares are very volatile and over the last year have had 33 moves greater than 5%. In context of that, today's move is indicating the market considers this news meaningful but not something that would fundamentally change its perception of the business. The previous big move was 27 days ago, when the company gained 7.98% on the news that the company reported an impressive 'beat and raise' first-quarter results that beat analysts' estimates for revenue, free cash flow, and earnings per share (EPS). Revenue and EPS guidance for the full year was raised and exceeded expectations. Guidance for the next quarter also beat. Management was also upbeat about the outcome of investments in international expansion as LTM international revenue grew 48% year-over-year. Overall, the Q1 results painted a positive picture of a healthy quarter for the company.
Five9 is down 6.92% since the beginning of the year, and at $64.74 per share it is trading 45.1% below its 52-week high of $118.02 from August 2022. Investors who bought $1,000 worth of Five9's shares 5 years ago would now be looking at an investment worth $1, 860.
Is now the time to buy Five9? Access our full analysis of the earnings results here, it's free.