What Happened?
A number of stocks jumped in the morning session after strong earnings from enterprise leaders ignited a massive rally across enterprise tech.
Atlassian led the charge, soaring nearly 30% after reporting 32% revenue growth and an unexpected acceleration in cloud adoption. Similarly, Twilio jumped 20% following its fastest growth in three years, fueled by a surge in demand for its AI-integrated voice tools.
This recovery was also bolstered by record-breaking cloud strength; while AWS grew a solid 28%, Google Cloud stunned Wall Street with a 63% revenue increase, proving that enterprise AI infrastructure spending is finally translating into tangible, top-line returns for the software layer. This rally reflected a strategic pivot as investors returned to high-growth software-as-a-service (SaaS) names that previously trailed the broader market.
The stock market overreacts to news, and big price drops can present good opportunities to buy high-quality stocks.
Among others, the following stocks were impacted:
- Customer Experience Software company Sprinklr (NYSE: CXM) jumped 4.7%. Is now the time to buy Sprinklr? Access our full analysis report here, it’s free.
- Video Conferencing company Five9 (NASDAQ: FIVN) jumped 6.7%. Is now the time to buy Five9? Access our full analysis report here, it’s free.
- Endpoint Security company Varonis Systems (NASDAQ: VRNS) jumped 4.8%. Is now the time to buy Varonis Systems? Access our full analysis report here, it’s free.
Zooming In On Five9 (FIVN)
Five9’s shares are extremely volatile and have had 33 moves greater than 5% over the last year. In that context, today’s move indicates the market considers this news meaningful but not something that would fundamentally change its perception of the business.
The previous big move we wrote about was 3 days ago when the stock gained 22.7% on the news that the company reported strong first-quarter 2026 earnings that surpassed analyst expectations and raised its full-year financial outlook.
The cloud contact center software provider announced that its first-quarter sales grew 9.2% year-over-year to $305.3 million, beating Wall Street's forecasts. Its adjusted earnings per share of $0.69 was also slightly ahead of estimates. The company showed strong profitability, with adjusted operating income of $57.8 million surpassing expectations by over 14%, leading to a notable expansion in operating margin. Looking ahead, Five9 lifted its revenue guidance for the full year to $1.26 billion at the midpoint and increased its full-year adjusted EPS guidance to $3.26.
Five9 is up 26.4% since the beginning of the year, but at $23.78 per share, it is still trading 19.6% below its 52-week high of $29.56 from June 2025. Despite the year-to-date gain, investors who bought $1,000 worth of Five9’s shares 5 years ago would now be looking at only $138.00.
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