3 Reasons to Sell EGHT and 1 Stock to Buy Instead

StockStory11-28 17:49

3 Reasons to Sell EGHT and 1 Stock to Buy Instead 8x8 currently trades at $3.10 per share and has shown little upside over the past six months, posting a middling return of 4.4%. The stock also ...

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The stock also ...</p>\n\n<a href=\"https://finance.yahoo.com/news/3-reasons-sell-eght-1-094919280.html\">Source Link</a>\n\n</div>\n","source":"yahoofinance","html":"<!DOCTYPE html>\n<html>\n<head>\n<meta http-equiv=\"Content-Type\" content=\"text/html; charset=utf-8\" />\n<meta name=\"viewport\" content=\"width=device-width,initial-scale=1.0,minimum-scale=1.0,maximum-scale=1.0,user-scalable=no\"/>\n<meta name=\"format-detection\" content=\"telephone=no,email=no,address=no\" />\n<title>3 Reasons to Sell EGHT and 1 Stock to Buy Instead</title>\n<style type=\"text/css\">\na,abbr,acronym,address,applet,article,aside,audio,b,big,blockquote,body,canvas,caption,center,cite,code,dd,del,details,dfn,div,dl,dt,\nem,embed,fieldset,figcaption,figure,footer,form,h1,h2,h3,h4,h5,h6,header,hgroup,html,i,iframe,img,ins,kbd,label,legend,li,mark,menu,nav,\nobject,ol,output,p,pre,q,ruby,s,samp,section,small,span,strike,strong,sub,summary,sup,table,tbody,td,tfoot,th,thead,time,tr,tt,u,ul,var,video{ font:inherit;margin:0;padding:0;vertical-align:baseline;border:0 }\nbody{ font-size:16px; line-height:1.5; color:#999; background:transparent; }\n.wrapper{ overflow:hidden;word-break:break-all;padding:10px; }\nh1,h2{ font-weight:normal; line-height:1.35; margin-bottom:.6em; }\nh3,h4,h5,h6{ line-height:1.35; margin-bottom:1em; }\nh1{ font-size:24px; }\nh2{ font-size:20px; }\nh3{ font-size:18px; }\nh4{ font-size:16px; }\nh5{ font-size:14px; }\nh6{ font-size:12px; }\np,ul,ol,blockquote,dl,table{ margin:1.2em 0; }\nul,ol{ margin-left:2em; }\nul{ list-style:disc; }\nol{ list-style:decimal; }\nli,li p{ margin:10px 0;}\nimg{ max-width:100%;display:block;margin:0 auto 1em; }\nblockquote{ color:#B5B2B1; border-left:3px solid #aaa; padding:1em; }\nstrong,b{font-weight:bold;}\nem,i{font-style:italic;}\ntable{ width:100%;border-collapse:collapse;border-spacing:1px;margin:1em 0;font-size:.9em; }\nth,td{ padding:5px;text-align:left;border:1px solid #aaa; }\nth{ font-weight:bold;background:#5d5d5d; }\n.symbol-link{font-weight:bold;}\n/* header{ border-bottom:1px solid #494756; } */\n.title{ margin:0 0 8px;line-height:1.3;color:#ddd; }\n.meta {color:#5e5c6d;font-size:13px;margin:0 0 .5em; }\na{text-decoration:none; color:#2a4b87;}\n.meta .head { display: inline-block; overflow: hidden}\n.head .h-thumb { width: 30px; height: 30px; margin: 0; padding: 0; border-radius: 50%; float: left;}\n.head .h-content { margin: 0; padding: 0 0 0 9px; float: left;}\n.head .h-name {font-size: 13px; color: #eee; margin: 0;}\n.head .h-time {font-size: 11px; color: #7E829C; margin: 0;line-height: 11px;}\n.small {font-size: 12.5px; display: inline-block; transform: scale(0.9); -webkit-transform: scale(0.9); transform-origin: left; -webkit-transform-origin: left;}\n.smaller {font-size: 12.5px; display: inline-block; transform: scale(0.8); -webkit-transform: scale(0.8); transform-origin: left; -webkit-transform-origin: left;}\n.bt-text {font-size: 12px;margin: 1.5em 0 0 0}\n.bt-text p {margin: 0}\n</style>\n</head>\n<body>\n<div class=\"wrapper\">\n<header>\n<h2 class=\"title\">\n3 Reasons to Sell EGHT and 1 Stock to Buy Instead\n</h2>\n\n<h4 class=\"meta\">\n\n\n2024-11-28 17:49 GMT+8&nbsp;&nbsp;&nbsp;<a href=https://finance.yahoo.com/news/3-reasons-sell-eght-1-094919280.html><strong>StockStory</strong></a>\n\n\n</h4>\n\n</header>\n<article>\n<div>\n<p>3 Reasons to Sell EGHT and 1 Stock to Buy Instead \n \n\n8x8 currently trades at $3.10 per share and has shown little upside over the past six months, posting a middling return of 4.4%. The stock also ...</p>\n\n<a href=\"https://finance.yahoo.com/news/3-reasons-sell-eght-1-094919280.html\">Source Link</a>\n\n</div>\n\n\n</article>\n</div>\n</body>\n</html>\n","isBrief":false,"type":0,"news_type":1,"symbol":"BK4023","symbol_name":"应用软件","start_time":0,"source_url":"https://finance.yahoo.com/news/3-reasons-sell-eght-1-094919280.html","article_id":"2487349991","we_media_id":null,"thumbnails":["https://s.yimg.com/uu/api/res/1.2/Nyb07pzkmvLt0JlLnx8miA--~B/aD0xNjAzO3c9MjQwMDthcHBpZD15dGFjaHlvbg--/https://media.zenfs.com/en/stockstory_922/efd1a4bbaf7f9e40a60a15d73263d137"],"rights":null,"url":"https://stock-news.laohu8.com/highlight/detail?id=2487349991","pubTimestamp":1732787359,"sourceInfo":{"source_id":"yahoofinance","name":"雅虎金融"},"weMediaInfo":null,"summary":"8x8 currently trades at $3.10 per share and has shown little upside over the past six months, posting a middling return of 4.4%. The stock also fell short of the S&P 500’s 13% gain during that period.We're cautious about 8x8. Here are three reasons why EGHT doesn't excite us and a stock we'd rather own.Founded in 1987, 8x8  provides software for organizations to efficiently communicate and collaborate with their customers, employees, and partners.8x8’s billings came in at $182.6 million in Q3, and it averaged 2.3% year-on-year declines over the last four quarters. This performance was underwhelming and shows the company faced challenges in acquiring and retaining customers. It also suggests there may be increasing competition or market saturation.8x8 falls short of our quality standards. With its shares underperforming the market lately, the stock trades at 0.6x forward price-to-sales . While this valuation is optically cheap, the potential downside is still huge given its shaky fundam","collect":0,"end_time":0,"defaultTopTitle":"yahoo.com","property":[],"viewcount":null,"language":"en","relate_stocks":{"BK4023":"应用软件","BK4211":"区域性银行","EGHT":"8x8 Inc","CAC":"卡姆登国家银行"},"translate_title":"卖出EGHT的3个理由和买入1只股票","themeId":null,"isJumpTheme":false,"ttsUrl":null,"symbols_score_info":{"CAC":1,"EGHT":1},"content_text":"3 Reasons to Sell EGHT and 1 Stock to Buy Instead \n \n\n8x8 currently trades at $3.10 per share and has shown little upside over the past six months, posting a middling return of 4.4%. The stock also fell short of the S&P 500’s 13% gain during that period. \nIs now the time to buy 8x8, or should you be careful about including it in your portfolio? \nDive into our full research report to see our analyst team’s opinion, it’s free. \nWe're cautious about 8x8. Here are three reasons why EGHT doesn't excite us and a stock we'd rather own. \nWhy Do We Think 8x8 Will Underperform? \nFounded in 1987, 8x8 (NYSE:EGHT) provides software for organizations to efficiently communicate and collaborate with their customers, employees, and partners. \n1. Declining Billings Reflect Product and Sales Weakness\nBillings is a non-GAAP metric that is often called “cash revenue” because it shows how much money the company has collected from customers in a certain period. This is different from revenue, which must be recognized in pieces over the length of a contract. \n8x8’s billings came in at $182.6 million in Q3, and it averaged 2.3% year-on-year declines over the last four quarters. This performance was underwhelming and shows the company faced challenges in acquiring and retaining customers. It also suggests there may be increasing competition or market saturation. \n2. Projected Revenue Growth Shows Limited Upside\nForecasted revenues by Wall Street analysts signal a company’s potential. Predictions may not always be accurate, but accelerating growth typically boosts valuation multiples and stock prices while slowing growth does the opposite. \nSell-side analysts expect 8x8’s revenue to remain flat over the next 12 months, a deceleration versus its 7.4% annualized growth rate for the last three years. This projection doesn't excite us and suggests its products and services will face some demand challenges. \n3. Long Payback Periods Delay Returns\nThe customer acquisition cost (CAC) payback period represents the months required to recover the cost of acquiring a new customer. Essentially, it’s the break-even point for sales and marketing investments. A shorter CAC payback period is ideal, as it implies better returns on investment and business scalability. \n8x8’s recent customer acquisition efforts haven’t yielded returns as its CAC payback period was negative this quarter, meaning its sales and marketing investments outpaced its revenue. The company’s inefficiency indicates it operates in a highly competitive environment where there is little differentiation between 8x8’s products and its peers. \nFinal Judgment\n8x8 falls short of our quality standards. With its shares underperforming the market lately, the stock trades at 0.6x forward price-to-sales (or $3.10 per share). While this valuation is optically cheap, the potential downside is still huge given its shaky fundamentals. There are more exciting stocks to buy at the moment. We’d recommend looking at Microsoft, the most dominant software business in the world. \nStocks We Would Buy Instead of 8x8\nThe elections are now behind us. With rates dropping and inflation cooling, many analysts expect a breakout market to cap off the year - and we’re zeroing in on the stocks that could benefit immensely. \nTake advantage of the rebound by checking out our Top 6 Stocks for this week. This is a curated list of our High Quality stocks that have generated a market-beating return of 175% over the last five years. \nStocks that made our list in 2019 include now familiar names such as Nvidia (+2,691% between September 2019 and September 2024) as well as under-the-radar businesses like United Rentals (+550% five-year return). Find your next big winner with StockStory today for free.","kind":"highlight","is_publish_news":true,"is_publish_highlight":false,"is_publish_live":false,"is_publish_wemedia":null,"editions":null,"column":"","sentiment":"-1","news_tag":"","news_rank":0,"symbols":[],"gpt_button":1},"commentList":[],"isCommentEnd":true,"newsSizeData":{"likeSize":0,"commentSize":0,"repostSize":0,"favoriteSize":0,"likeStatus":false,"favoriteStatus":false},"APP":{"userAgent":"Mozilla/5.0 AppleWebKit/537.36 (KHTML, like Gecko; compatible; ClaudeBot/1.0; +claudebot@anthropic.com)","isDev":false,"isTTM":true,"deviceId":"web-server-community-laohu8-v3","version":"4.29.3","shortVersion":"4.29.3","platform":"web","vendor":"web","appName":"ttm","isIOS":false,"isAndroid":false,"isTiger":false,"isTHS":false,"isWeiXin":false,"isWeiXinMini":false,"isWeiBo":false,"isQQ":false,"isBaiduSwan":false,"isBaiduBox":false,"isDingTalk":false,"isToutiao":false,"isOnePlus":false,"isHuaWei":false,"isXiaomi":false,"isXiaomiWebView":false,"isOppo":false,"isVivo":false,"isSamsung":false,"isMobile":false},"href":"/m/news/2487349991"}