The stock of cloud contact center specialist Five9 demonstrated how quickly market sentiment can shift this week. A substantial upward revision to the company’s profit outlook for both the current quarter and the full 2025 fiscal year has provided a powerful boost, significantly surpassing investor expectations. The key question now is whether this positive momentum can reverse the downward trend that has characterized the stock for months.
Investor Enthusiasm Returns
The market response on Monday was decisively positive, with Five9 shares climbing over 3%. Trading concluded at $27.36 per share, allowing the stock to break above its key 50-day moving average of $26.38. Heightened investor interest was further evidenced by a trading volume exceeding 1.5 million shares.
This surge in confidence stems from a surprisingly optimistic forecast issued by the provider of intelligent cloud contact center solutions. For the third quarter, Five9 now anticipates adjusted earnings per share (EPS) in the range of $0.72 to $0.74. This new guidance dramatically outpaces the previous consensus analyst estimate of just $0.52. The company’s leadership also raised its full-year 2025 EPS forecast, now projecting $2.86 to $2.90, a significant increase from the earlier expectation of $2.05.
Should investors sell immediately? Or is it worth buying Five?
A Strong Signal in a Challenging Climate
The timing of this robust forecast is particularly noteworthy, arriving during a period that has been difficult for growth-oriented stocks. The upward revision signals strong management confidence in Five9’s operational strength and the sustained demand for its cloud-based contact center offerings.
Despite the recent rally, the equity remains approximately 45% below its 52-week high of nearly $50 per share. The critical issue for investors is determining if this marks the start of a durable recovery or a temporary uptick. The earnings forecast, which landed so far above market expectations, serves as a potent indicator that the company’s growth narrative may be back on track.
The upcoming release of the actual quarterly results will be the true test. If Five9 can deliver on these heightened expectations, the current positive impulse may have staying power, potentially fueling a more sustained upward trajectory for the stock.
Ad
Five Stock: Buy or Sell?! New Five Analysis from February 8 delivers the answer:
The latest Five figures speak for themselves: Urgent action needed for Five investors. Is it worth buying or should you sell? Find out what to do now in the current free analysis from February 8.
Five: Buy or sell? Read more here...
