12 Small Cap Stocks to Buy with Huge Upside Potential

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4. Five9, Inc. (NASDAQ:FIVN)

Analyst Upside: 63.55%

Market Cap: $1.65 billion

Number of Hedge Fund Holders: 36

Five9, Inc. (NASDAQ:FIVN) is one of the best small cap stocks to buy with huge upside potential. Five9, Inc. (NASDAQ:FIVN) announced on December 17 the appointment of Amit Mathradas as the company’s Chief Executive Officer and a director, effective February 2, 2026. Mr. Mathradas would take on the role from Board Chairman Mike Burkland, who would continue to serve on the Board and work with Mr. Mathradas to allow a smooth transition. Mike Burkland’s decision to retire from the CEO position was announced by management in July.

The same day, Five9, Inc. (NASDAQ:FIVN) received a rating update from William Blair analyst Arjun Bhatia, who reaffirmed a Buy rating on the stock. Wells Fargo analyst Ryan MacWilliams also released a rating update for the stock on December 16, maintaining a Hold rating with a $22 price target.

Separately, Five9, Inc. (NASDAQ:FIVN) reported an 8% growth in its revenue for fiscal Q3 2025, reaching a record $285.8 million, compared to $264.2 million for the same quarter last year. Its Enterprise AI revenue rose 41% year-over-year, and profitability increased with adjusted EBITDA margin reaching a record 25%.

For the full year 2025, the company expects to report revenue in the $1.1435 to $1.1495 billion range, and GAAP net income per share in the range of $0.36 to $0.43, assuming diluted shares outstanding of around 88.0 million.

Five9, Inc. (NASDAQ:FIVN) provides cloud software for contact centers, specializing in omnichannel routing, workforce organization, analytics, and reporting.

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