Needham Reaffirms Buy on Five9 (FIVN) Following Leadership Transition

Five9, Inc. (NASDAQ:FIVN) is one of the AI Stocks on the Market’s Radar. On December 18, Needham reiterated a “Buy” rating on the stock with a $40.00 price target. The rating affirmation follows Five9’s appointment of a new CEO, which the firm views as largely positive for scaling and AI product momentum.

On Wednesday, December 17, Five9 announced the appointment of Amit Mathradas as the company’s next CEO, succeeding long-time CEO Mike Burkland. Mathradas will assume duties as CEO effective February 2, 2026.

Five9 didn’t provide any updated financial guidance along with this announcement, citing the recency of its earnings report. However, the firm noted that it plans on hosting an investor day in 2026 that will provide details on the company’s strategy and long-term financial outlook.

Needham analyst Scott Berg views the appointment as largely positive, citing their previous experience working with Mathradas.

“We have experience working with Mr. Mathradas during his tenure with Avalara and view the appointment as positive, given Mr. Mathradas’ experience scaling enterprise software businesses & driving AI-led product innovation.”

Five9, Inc. (NASDAQ:FIVN) is a technology company that offers cloud software solutions for contact centers.

While we acknowledge the risk and potential of FIVN as an investment, our conviction lies in the belief that some AI stocks hold greater promise for delivering higher returns and doing so within a shorter time frame. If you are looking for an AI stock that is more promising than FIVN and that has 10,000% upside potential, check out our report about this cheapest AI stock.

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Disclosure: None.