8x8 Inc - Common stock (EGHT)

A number of stocks fell in the afternoon session after markets pulled back as a hotter-than-expected wholesale inflation report for July dampened hopes for a Federal Reserve interest rate cut. The U.S. Producer Price Index (PPI), a key measure of wholesale inflation, rose 0.9% month-over-month in July, far exceeding the 0.2% increase that economists had predicted. Annually, prices at the wholesale level jumped 3.3%, also surpassing the 2.5% forecast. This hotter-than-expected data has poured cold water on widespread expectations for an interest rate cut from the Federal Reserve next month. Persistent inflation makes it less likely for the central bank to ease monetary policy. Sectors with high-growth stocks, such as SaaS, are particularly sensitive to interest rate changes, as the prospect of higher rates for longer can diminish the present value of their future earnings, leading to a decline in stock prices.

A number of stocks jumped in the afternoon session after the SaaS sector continued to rally as favorable inflation data bolstered hopes for a Federal Reserve interest rate cut. This optimism was largely driven by a benign July Consumer Price Index (CPI) report, which solidified investor expectations for a Federal Reserve interest rate cut. Following the release of the inflation data, which showed a year-over-year increase of 2.7%, the probability of a rate cut in September surged to over 96%. Lower interest rates are typically beneficial for growth-oriented technology stocks, as they can reduce borrowing costs and increase the present value of future earnings. Adding to the positive sentiment was a 90-day delay in the imposition of higher tariffs on Chinese goods, which reduced trade-related uncertainty for the technology sector.

Business communications software company 8x8 (NYSE:EGHT) reported Q2 CY2025 results beating Wall Street’s revenue expectations, with sales up 1.8% year on year to $181.4 million. On the other hand, next quarter’s revenue guidance of $177.5 million was less impressive, coming in 1% below analysts’ estimates. Its non-GAAP profit of $0.08 per share was in line with analysts’ consensus estimates.

A number of stocks jumped in the afternoon session after cooler-than-expected inflation data ignited investor optimism for a potential Federal Reserve interest rate cut. The July Consumer Price Index (CPI) report, an important measure of inflation, came in cooler than expected, showing prices holding steady at an annual rate of 2.7%. This data has led to speculation that the Federal Reserve might lower interest rates. For growth-focused sectors like SaaS, lower interest rates are particularly beneficial as they increase the present value of companies' future earnings, making their stocks more appealing.

Check out the companies making headlines this week:

The Russell 2000 (^RUT) is packed with potential breakout stocks, thanks to its focus on smaller companies with high growth potential. However, smaller size also means these businesses often lack the resilience and financial flexibility of large-cap firms, making careful selection crucial.

Shares of business communications software company 8x8 (NYSE:EGHT) fell 10.6% in the afternoon session after the company reported fiscal first-quarter results that revealed declining profitability and provided a weak outlook for future quarters. The company posted a GAAP net loss of $4.3 million. While revenue narrowly beat analyst expectations, key profit metrics faltered. Non-GAAP gross margins tightened, as they fell to 67.8% from 70.6% in the same period last year. Cash flow from operations also decreased. Management attributed the margin pressure to a higher mix of usage-based offerings which carried lower profitability. Looking ahead, the company projected continued challenges and guided for lower gross margins for the remainder of the fiscal year. This outlook overshadowed the revenue figures, as investors focused on the deteriorating profitability.

Business communications software company 8x8 (NYSE:EGHT) reported Q2 CY2025 results topping the market’s revenue expectations, with sales up 1.8% year on year to $181.4 million. On the other hand, next quarter’s revenue guidance of $177.5 million was less impressive, coming in 1% below analysts’ estimates. Its non-GAAP profit of $0.08 per share was in line with analysts’ consensus estimates.

Business communications software company 8x8 (NYSE:EGHT) will be reporting earnings this Tuesday after the bell. Here’s what to look for.

A number of stocks fell in the afternoon session after the White House announced a new round of steep global tariffs, sparking concerns of a trade war and its impact on the U.S. and global economies. 

The low valuation multiples for value stocks provide a margin of safety that growth stocks rarely offer. However, the challenge lies in determining whether these cheap assets are genuinely undervalued or simply on sale due to their potentially deteriorating business models.

A number of stocks fell in the afternoon session after a broader market sell-off triggered by renewed trade tensions. U.S. stock indices fell after the Trump administration announced intentions to impose a 35% tariff on many goods imported from Canada. 

Wrapping up Q1 earnings, we look at the numbers and key takeaways for the video conferencing stocks, including Five9 (NASDAQ:FIVN) and its peers.

A number of stocks jumped in the afternoon session after the major indices rebounded (Nasdaq +1.4%, S&P 500 +1.0%) on hopes the reported ceasefire between Israel and Iran will hold. This de-escalation in a volatile region helped to ease concerns about potential disruptions to global oil supplies, leading to a notable dip in crude oil prices. 

The end of the earnings season is always a good time to take a step back and see who shined (and who not so much). Let’s take a look at how video conferencing stocks fared in Q1, starting with 8x8 (NASDAQ:EGHT).

A highly volatile stock can deliver big gains - or just as easily wipe out a portfolio if things go south. While some investors embrace risk, mistakes can be costly for those who aren’t prepared.

The stocks in this article have caught Wall Street’s attention in a big way, with price targets implying returns above 20%. But investors should take these forecasts with a grain of salt because analysts typically say nice things about companies so their firms can win business in other product lines like M&A advisory.

Business communications software company 8x8 (NYSE:EGHT) fell short of the market’s revenue expectations in Q1 CY2025, with sales falling 1.3% year on year to $177 million. Its non-GAAP profit of $0.08 per share was in line with analysts’ consensus estimates.

The Russell 2000 (^RUT) is packed with potential breakout stocks, thanks to its focus on smaller companies with high growth potential. However, smaller size also means these businesses often lack the resilience and financial flexibility of large-cap firms, making careful selection crucial.

A number of stocks jumped in the afternoon session after the major indices rebounded (Nasdaq +2.0%, S&P 500 +2.0%) as President Trump postponed the planned 50% tariff on European Union imports, shifting the start date to July 9, 2025. 

While profitability is essential, it doesn’t guarantee long-term success. Some companies that rest on their margins will lose ground as competition intensifies - as Jeff Bezos said, "Your margin is my opportunity".

As the Q1 earnings season wraps, let’s dig into this quarter’s best and worst performers in the video conferencing industry, including RingCentral (NYSE:RNG) and its peers.