Five9 (FIVN) Experiences Weak Share Price Momentum Amid Broader SaaS Sector Headwinds

Five9, Inc. (NASDAQ:FIVN) is included in our list of the 14 oversold value stocks to invest in right now.

Five9 (FIVN) Experiences Weak Share Price Momentum Amid Broader SaaS Sector Headwinds

On February 3, 2026, Five9, Inc. (NASDAQ:FIVN)’s shares reached their 52-week low of $16.10, marking a sharp decline from its 52-week high of $49.90. This follows a challenging year for the company, during which its stock fell by over 60% amid broader SaaS sector headwinds.

Among recent company developments is Five9, Inc. (NASDAQ:FIVN)’s January 12 announcement of an expanded partnership with Google Cloud. A joint Enterprise CX AI solution was unveiled that integrates Five9’s AI-Infused Intelligent CX Platform with Google’s Gemini Enterprise and Vertex AI. The platform not only allows enterprises to deliver seamless, personalized, AI-driven customer experiences but also improves operational agility. At the same time, it supports end-to-end workflows for agents, supervisors, and administrators.

Three days earlier, Five9, Inc. (NASDAQ:FIVN) saw Morgan Stanley reduce its price target from $30 to $26, while reiterating an ‘Equal Weight’ rating. While the firm cited the SaaS sector’s underperformance, it expects AI-related risks to be lower in 2026. Morgan Stanley advises investors to remain selective within the sector amid limited broad corporate spending revisions.

Five9, Inc. (NASDAQ:FIVN), a San Ramon-based cloud software provider, specializes in AI-driven contact center solutions, including routing, analytics, workforce management, and reporting for enterprises.

While we acknowledge the potential of FIVN to grow, our conviction lies in the belief that some AI stocks hold greater promise for delivering higher returns and have limited downside risk. If you are looking for an AI stock that is more promising than FIVN and that has 100x upside potential, check out our report about this cheapest AI stock.

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Disclosure: None.