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Five9 Shares Plunge 51% in a Year: Should You Buy the Dip or Wait?

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Five9 (FIVN - Free Report) shares have lost 51.2% in the trailing 12 months, underperforming the Zacks Computer and Technology sector’s appreciation of 4.2% and the Zacks Internet – Software industry’s return of 2.3%.

FIVN’s underperformance can be attributed to the uncertainty of businesses surrounding the adoption of artificial intelligence (AI) into their operations, which led to delayed customer decisions and extended sales cycles. 

However, the company is seeing improvements as the uncertainty clears, by developing a growing number of partnerships and enhancing its AI-driven solutions. Five9 is well-positioned in the market as the leading provider of contact center software using AI, which highlights why investors should buy the stock now.

FIVN’s AI-Led Innovations Create Bright Prospects

Five9 recently introduced Spotlight, which is designed to help companies utilize Generative AI (GenAI) powered insights and access contextual data faster, reduce manual work and make data-driven decisions. This is likely to aid the company’s top line through increased consumer satisfaction and retention. 

Five9, Inc. Price and Consensus

Five9, Inc. Price and Consensus

Five9, Inc. price-consensus-chart | Five9, Inc. Quote

The company also launched Five9 AI Agents, the next-generation of Five9 Intelligent Virtual Agents which incorporates Generative AI. This will help businesses to create chat and voice bots that combine the conversational abilities of a human with the speed and extensive knowledge of AI.

Further, FIVN is now globally available on Google Cloud Marketplace and released Five9 AI Agents for Google Cloud. This will enable any global business to quickly activate Five9 through the marketplace, simplifying the procurement, billing and deployment of the AI-driven Customer Experience (CX) for joint customers. This further strengthens the company’s market reach by driving customer acquisition.

FIVN’s Upbeat Q1 2025 Guidance

Five9 expects non-GAAP earnings per share in the range of 47-49 cents and revenues in the band of $271.5-$272.5 million in the first quarter of 2025.

The Zacks Consensus Estimate for FIVN’s first-quarter 2025 earnings is currently pegged at 49 cents per share, showing an upward revision by 2 cents over the past 30 days. The estimate suggests year-over-year growth of 2.08%. The consensus mark for revenues is pegged at $272.09 million, indicating a year-over-year increase of 10.15%.

FIVN beat the Zacks Consensus Estimate for earnings in each of the trailing four quarters, with the average surprise being 18.55%.

Find the latest EPS estimates and surprises on Zacks Earnings Calendar.

Here’s Why You Should Buy FIVN Stock Now

Five9 is uniquely positioned when it comes to AI for CX with a broad portfolio of AI-driven solutions. Personalized AI agents who provide accurate solutions are an offering that is unique to a CCaaS platform like Five9. It is also at the forefront of engine-agnostic AI, which ensures that businesses can easily and quickly change the underlying engine to leverage the latest and highest-performing models. Its products like AI Insights help businesses to identify high ROI opportunities to deploy AI to enhance CX and drive operational efficiency.

The company has also developed partnerships with giants, such as Salesforce (CRM - Free Report) , ServiceNow (NOW - Free Report) , Microsoft (MSFT - Free Report) , Verint and Google, and this momentum is likely to continue throughout 2025.

FIVN currently carries a Zacks Rank #2 (Buy) and has a Growth Score of A, a favorable combination that offers a strong investment opportunity, per the Zacks proprietary methodology. You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.


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