Group 1 - Five9 Incorporated (NASDAQ:FIVN) is identified as one of the small-cap software infrastructure stocks with significant upside potential, with a current upside of more than 59% despite a price target reduction from $30 to $26 by Morgan Stanley [1][3] - Barclays analyst Raimo Lenschow also reduced his target price on Five9 from $29 to $25 while maintaining an Overweight rating, indicating an upside potential of over 53% based on steady macro and IT spending [4] - The company operates as a contact center as a service (CCaaS) provider, offering a cloud-based CX platform that includes applications for customer service, sales, and marketing, featuring services like virtual assistance and AI insights [5] Group 2 - Application SaaS companies, including Five9, have shown weaker returns in 2025 compared to the broader software segment, although AI-related risks may be less severe than expected, leading to a more favorable outlook for the segment [3] - The software sector is currently out of favor, with depressed valuations and limited signs of increased software spending, prompting analysts to be cautious and selective in their outlook [4]