Why Five9 Stock Surges Almost 4% Today

Young Crowd May Help Promote Contact Center Solution ProvidersFive9 (NASDAQ resonance code: FIVN)The fate of the company. An analyst following the company noted in a new research report released Tuesday that the company could benefit greatly from welcoming a user base like He. Investors were clearly convinced by this argument and ended up flooding Five9 shares, sending its stock price up by nearly 4%.

Teens like to use cell phones for customer support

This analyst isPiper Sandler James Fish of the company. In his latest take on Five9 stock, he reiterated a Hold (Buy) recommendation and a price target of $86 per share. At that price, Fish expects the stock to rise nearly 40%.

The Piper Sandler forecaster reported that approximately 50% of teenage consumers still prefer to use their cell phones for customer service functions. This type of solution is Five9's strength, so if Fish's prediction is accurate and the trend continues, it could provide a solid foundation for the company's business.

However, he also sounded a note of caution, writing, "Whether the number of net proxies in the market will start to shrink, especially with the impact of artificial intelligence (AI), remains a concern, but it is not yet apparent.

Adding to existing services

Five9 offers a cloud-based solution that not only connects a client's users to the appropriate customer service agent, but also quickly provides detailed information about that user. Considering the many headaches associated with customer service, this is already an attractive prospect, and one that could be truly realized if the company could effectively customize these products to reflect the needs and concerns of young users.

Should you invest $1,000 in Five9 now?

Before buying Five9 stock, consider the following:

Motley Fool Stock AdvisorThe analyst team has just named what they believe to be the best value for investors.10Only ...... and Five9 were not included. The 10 stocks selected will bring substantial returns over the next few years.

Stock AdvisorIt provides investors with an easy-to-understand blueprint for success, including guidance on building a portfolio, regular updates from analysts, and two new stock picks each month. Since 2002, StockAdvisorThe service has more than doubled the return on the S&P 500 Index.

View 10 stocks only

*Stock Advisory Rates as of April 8, 2024

Eric Volkman does not own any of the shares listed above.The Motley Fool holds Recommendation Five9.The Motley Fool has a disclosure policy.

Why is Five9 stock up nearly 4% today?