Our Stock of the Week is Five9, Inc. (FIVN). Five9 is a cloud-based contact center software company that provides AI-powered customer experience solutions to enterprises, enabling businesses to handle customer interactions across voice, chat, email, and social channels through a single integrated platform. After spending four-plus years in a steady downtrend, FIVN hit traders’ radar screens on May 1st when the company reported Q1 2026 results, with revenues growing 9.2% to $305.3 million (vs. est. $297 million) and adjusted earnings of $0.69 per share (vs. est. $0.66), while raising full-year revenue guidance to $1.26 billion at the midpoint with adjusted EPS guidance of $3.26.
Notably, AI revenue grew 68% year-over-year and now represents 13% of subscription revenue, with management stating that, “as AI replaces seats, those dollars are not leaving the contact center; they are getting reallocated towards software”, suggesting that FIVN’s revenue expansion may be in the early stages. The company ended the quarter with $724 million in cash, announced a new $200 million share repurchase program on top of an accelerated $90 million buyback already underway, and reaffirmed a full-year free cash flow target of approximately $175 million. Analyst price targets moved higher across the board in the wake of the report, with Mizuho raising its target to $32 from $28 and Rosenblatt moving to $29 from $26. Currently, 20 analysts cover the stock, with an average 12-month target price of $27.72.
From a valuation standpoint, FIVN has a trailing PE of just 7.0x, a forward PE of 6.4x, and a forward price-to-earnings-growth ratio of 0.75 (where any reading under 1.0 is generally considered to be undervalued).
Technically, shares have been flagging over the past couple of weeks with support at the 200-day moving average as they digest that post-earnings push past long-term descending resistance and a move out of that pattern could attract attention.
As always, we will not chase any early strength on Monday morning, but will look to aggressively trade the stock as the chart develops.
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This post is for educational purposes only! This is not advice or a recommendation. We do not give investment advice. Do not act on this post. Do not buy, sell, or trade the stocks mentioned herein. We WILL actively trade this stock differently than discussed herein. We will sell into strength and buy or sell at any time for any reason. We will actively trade into any unusual activity. At the time of this post, principals, employees, and affiliates of Shark Investing, Inc. and/or principals, clients, employees, and affiliates of Hammerhead Financial Strategies, LLC, directly or indirectly, controlled investment and/or trading accounts containing positions in FIVN at the time this was published. To accommodate the objectives of these investing and/or trading accounts, the trading in these shares will be contrary to and/or inconsistent with the information contained in this posting.
