What to Know About 8x8 Stocks: A Brief Guide

What to Know About 8x8 Stocks: A Brief Guide

If you are considering investing in the stock market, you may have come across 8x8 Inc. This company provides cloud-based communication tools for businesses, and its stock has been gaining attention from investors. In this article, we will give you a brief guide on what you need to know about8x8 stocks.

Company Overview

8x8 Inc. was founded in 1987 and is headquartered in San Jose, California. The company specializes in providing cloud-based communication tools for businesses, including voice over internet protocol (VoIP) phone systems, video conferencing, and contact center solutions. Its services are offered through monthly subscriptions, which has led to a steady revenue stream for the company.

Financial Performance

When investing in a company, it is important to consider its financial performance. 8x8 Inc. has been experiencing steady revenue growth over the past few years. In 2020, the company reported $468.9 million in revenue, up from $353.6 million in 2018. However, the company has not yet turned a profit, reporting a net loss of $60.3 million in 2020.

Competitive Landscape

One factor to consider when investing in 8x8 stocks is thecompetitive landscape. The company competes with other cloud-based communication providers, such as RingCentral and Zoom. However, 8x8 Inc. differentiates itself by offering a more comprehensive suite of communication tools, including contact center solutions. This has helped the company to gain a foothold in the market.

Investment Risks

As with any investment, there are risks to consider when investing in 8x8 stocks. One risk is the competitive landscape, as mentioned above. Additionally, the company's lack of profitability is a concern for some investors. There is also the risk of market volatility, which can impact the stock price.

Investment Opportunities

Despite the risks, there are also potential opportunities for investors interested in 8x8 stocks. The company's steady revenue growth and comprehensive suite of communication tools make it an attractive investment for some. Additionally, the shift towards remote work due to the COVID-19 pandemic has increased demand for cloud-based communication solutions, which could benefit 8x8 Inc. in the long term.

Investment Strategies

If you are considering investing in 8x8 stocks, it is important to have a sound investment strategy in place. This may include diversifying your portfolio, as well as conducting thorough research on the company and its competitors. Additionally, keeping an eye on market trends and news related to the company can help inform your investment decisions.

Conclusion

In conclusion, 8x8 Inc. is a cloud-based communication provider that has been gaining attention from investors. The company's steady revenue growth and comprehensive suite of communication tools make it an attractive investment opportunity, but there are also risks to consider. As with any investment, it is important to conduct thorough research and have a sound investment strategy in place.