EGHT Declines 20% in a Month: Should You Buy, Sell or Hold the Stock?

Core Viewpoint - 8x8, Inc. (EGHT) has experienced a significant decline in share price, dropping 19.6% since the release of its third-quarter fiscal 2025 results, underperforming both the broader technology sector and its industry peers [1][3]. Financial Performance - Total revenues for 8x8 fell by 1.2% year-over-year and sequentially, amounting to $179 million in the third quarter of fiscal 2025, primarily due to expected revenue declines from customers on the Fuze platform and over$2 million in forex headwinds [3][13]. - The Zacks Consensus Estimate for fourth-quarter fiscal 2025 earnings is 8 cents per share, indicating no year-over-year change, while revenues are expected to decline by 0.76% to $178.04 million [13]. - For the full fiscal year 2025, revenue estimates are pegged at$716.06 million, reflecting a 1.74% year-over-year decline, with earnings expected to be 36 cents per share, down 23.40% year-over-year [14]. Strategic Developments - 8x8 is enhancing its customer experience platform by integrating Contact Center, Unified Communications, and CPaaS, which aims to streamline customer interactions and improve operational efficiency [5]. - The company has expanded its 8x8 Secure Pay service to facilitate secure payments across various channels, enhancing customer experience through automation [6]. - The introduction of the 8x8 Intelligent Customer Assistant with a Voice Intelligent Directory aims to improve customer interactions by connecting callers to the right contacts more efficiently [7]. Growth Initiatives - The acquisition of Fuze has strengthened 8x8's Experience Communications as a Service (XCaaS) platform, expanding its global presence, particularly in Europe, and ensuring a smooth integration process [9]. - Partnerships, such as with CallCabinet, enhance compliance capabilities for users on Microsoft Teams, reinforcing 8x8's commitment to delivering certified solutions for business communications [10]. - 8x8 is focusing on expanding its international presence, particularly in the Asia-Pacific region, where it secured its largest deal to date with a leading auto manufacturer [11]. Market Engagement - A major U.S. retailer has engaged 8x8 for a new contact center, marking the largest follow-on deal in the company's history, indicating strong customer engagement and growth potential [12].