Needham Reiterates 'Buy' Rating on Five9, Inc. (FIVN) Following Solid Q2 Performance

With a one-year share price decline and significant hedge fund interest, Five9, Inc. (NASDAQ:FIVN) secures a spot on our list of the 12 Best Stocks to Buy in Falling Markets According to Hedge Funds.

On August 1, 2025, Needham analyst Scott Berg reiterated his ‘Buy’ rating on Five9, Inc. (NASDAQ:FIVN) with a $40 price target, citing the company’s solid Q2 performance. Subscription revenue increased by 16%, driven by a 42% year-on-year increase in Enterprise AI sales, while Enterprise AI bookings tripled and new logo AI bookings doubled.

Despite some macroeconomic caution weighing on H2 projections, strong sales and rising market adoption support an optimistic outlook. Leadership changes, such as the retirement of the long-time CEO and the appointment of a new CFO, have not lowered confidence. Analysts believe Five9, Inc. (NASDAQ:FIVN) is well-positioned to benefit from the burgeoning agentic AI trend while maintaining its competitive advantage in intelligent contact center solutions.

Five9, Inc. (NASDAQ:FIVN) offers cloud-based AI-powered contact center software that enables seamless customer interactions across voice, chat, email, online, and social media channels worldwide. It is included in our list of the Best Bear Market Stocks.

While we acknowledge the potential of FIVN as an investment, we believe certain AI stocks offer greater upside potential and carry less downside risk. If you're looking for an extremely undervalued AI stock that also stands to benefit significantly from Trump-era tariffs and the onshoring trend, see our free report on the best short-term AI stock.

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Disclosure: None.