RingCentral (RING) and Five9 (FIVN) rally as AI fears settle
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shares RingCentral And five9 Both software firms rose on Friday after earnings eased recent fears that artificial intelligence is eating into their business models.
RingCentral gained 34% in value, while Five9 gained approximately 12%. At the top of Wall Street making predictions and issuing optimistic guidance. Both companies, which offer customer service solutions such as voice integration, said the accelerating adoption of artificial intelligence is driving demand.
New artificial intelligence tools that can create apps and websites in minutes have spooked investors and sparked a massive sell-off in the software industry in recent weeks.
As companies turn to faster and more efficient artificial intelligence tools, there is concern that these products emerging from products such as Anthropic and OpenAI will replace the long-standing business models of the software-as-a-service industry.
So far this year, iShares Extended Technology-Software Sector ETF The tracking industry fell by approximately 23%, leading to a downward slide Atlassian, Unity Software And fast7They have lost more than half of their value.
software giants sales force And Microsoft fell 30% and 18% respectively.
RingCentral, which is up about 37% this year after a 17% decline in 2025, called AI a headwind in its business and told investors Thursday that annual recurring revenue from customers using the tools has doubled year over year to about 10%.
The company also recently integrated ChatGPT models to voice artificial intelligence product.
Five9 told investors that enterprise AI bookings have more than doubled from a year ago, leading to an increase in backlogs. Management also said annual recurring revenue for the company’s AI portfolio reached $100 million.
Five9 leverages large language models, or LLMs, to develop solutions for its customers but maintains an “absolute competitive moat,” President Michael Burkland told analysts during an earnings call on Thursday.
“We will continue to make advances through LLMs, but I even said this two years ago, you cannot run a customer service organization in an LLM,” he said.
Five9 shares are down about 4% this year, following a 51% selloff in 2025.
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