8x8 Inc Stock Surge: Why It's Up Over 50% in a Bear Market 📈

https://www.overlookedalpha.com

Even in a deep bear market in tech, 8x8 Inc. has seen a brutal sell-off. But with $EGHT stock now up more than 50% from the lows, is there more upside ahead for this communications platform?

8x8 operates a UCaaS, or unified communications as a service, platform. They provide voice calling, chat, video, and contact center solutions, all with the help of analytics software and even AI. But despite this, the share price performance has been brutal. After reaching an all-time high of $39 in January 2021, the stock hit a 10-year low of just above $3 in October.

With $EGHT currently trading below $5, the stock still looks attractive. It trades for about 1.2x guided revenue for fiscal 2023 and about 12x Street consensus EPS for FY24. 8x8 is still growing nicely, with FY23 guidance implying year-over-year revenue growth of about 18%.

However, the space is highly competitive, with $EGHT going up against companies like Zoom, Five9, and even Twilio. But the likely bankruptcy of Avaya could provide a bit of help on the competitive front. Avaya isn't going out of business, but the upheaval caused by a restructuring could put some of its nearly $3 billion in revenue up for grabs.