Bearish signal on 8x8 Inc. (EGHT) as the stock hits resistance
I don’t know whether to classify 8x8 Inc. (Nasdaq: EGHT) as a software company or a communication services company. Investor’s Business Daily classifies it as a software company while Yahoo! Finance lists it as a communication services company. Regardless of the classification, the stock is hitting a key resistance point and a bearish signal was generated.
We see on the daily chart that the stock fell below the $20.50 level back in October. It would eventually drop all the way down to $15.13 before rebounding. It rallied throughout November and hit a high of $20.41 in early December. The stock fell again, only this time it only dropped to $16.34. The stock rallied again in January, but failed to close above the $20.50 level before turning lower again. Now the stock is making a third attempt to move above the $20.50 mark.
We see that the daily stochastics readings are in overbought territory and they just made a bearish crossover. The indicators did the same thing in early December. In January, the indicators remained in overbought territory for an extended period.
The Tickeron AI Trend Prediction tool generated a bearish signal on 8x8 on February 19 and the signal came with a 71% confidence level. The signal calls for a 4% decline over the next month and 84% of previous predictions have been successful.
EGHT in upward trend: 10-day moving average broke above 50-day moving average on May 04, 2026
The 10-day moving average for EGHT crossed bullishly above the 50-day moving average on May 04, 2026. This indicates that the trend has shifted higher and could be considered a buy signal. In of 11 past instances when the 10-day crossed above the 50-day, the stock continued to move higher over the following month. The odds of a continued upward trend are .
Technical Analysis (Indicators)
Bullish Trend Analysis
The Stochastic Oscillator shows that the ticker has stayed in the oversold zone for 13 days. The price of this ticker is presumed to bounce back soon, since the longer the ticker stays in the oversold zone, the more promptly an upward trend is expected.
The 50-day moving average for EGHT moved above the 200-day moving average on May 07, 2026. This could be a long-term bullish signal for the stock as the stock shifts to an upward trend.
Following a 3-day Advance, the price is estimated to grow further. Considering data from situations where EGHT advanced for three days, in of 232 cases, the price rose further within the following month. The odds of a continued upward trend are .
EGHT may jump back above the lower band and head toward the middle band. Traders may consider buying the stock or exploring call options.
The Aroon Indicator entered an Uptrend today. In of 152 cases where EGHT Aroon's Indicator entered an Uptrend, the price rose further within the following month. The odds of a continued Uptrend are .
Bearish Trend Analysis
The 10-day RSI Indicator for EGHT moved out of overbought territory on May 06, 2026. This could be a bearish sign for the stock. Traders may want to consider selling the stock or buying put options. Tickeron's A.I.dvisor looked at 24 similar instances where the indicator moved out of overbought territory. In of the 24 cases, the stock moved lower in the following days. This puts the odds of a move lower at .
The Momentum Indicator moved below the 0 level on May 15, 2026. You may want to consider selling the stock, shorting the stock, or exploring put options on EGHT as a result. In of 91 cases where the Momentum Indicator fell below 0, the stock fell further within the subsequent month. The odds of a continued downward trend are .
The Moving Average Convergence Divergence Histogram (MACD) for EGHT turned negative on May 15, 2026. This could be a sign that the stock is set to turn lower in the coming weeks. Traders may want to sell the stock or buy put options. Tickeron's A.I.dvisor looked at 53 similar instances when the indicator turned negative. In of the 53 cases the stock turned lower in the days that followed. This puts the odds of success at .
EGHT moved below its 50-day moving average on June 03, 2026 date and that indicates a change from an upward trend to a downward trend.
Following a 3-day decline, the stock is projected to fall further. Considering past instances where EGHT declined for three days, the price rose further in of 62 cases within the following month. The odds of a continued downward trend are .
Fundamental Analysis (Ratings)
The Tickeron Price Growth Rating for this company is (best 1 - 100 worst), indicating fairly steady price growth. EGHT’s price grows at a lower rate over the last 12 months as compared to S&P 500 index constituents.
The Tickeron PE Growth Rating for this company is (best 1 - 100 worst), pointing to slightly better than average earnings growth. The PE Growth rating is based on a comparative analysis of stock PE ratio increase over the last 12 months compared against S&P 500 index constituents.
The Tickeron Valuation Rating of (best 1 - 100 worst) indicates that the company is slightly overvalued in the industry. This rating compares market capitalization estimated by our proprietary formula with the current market capitalization. This rating is based on the following metrics, as compared to industry averages: P/B Ratio (1.811) is normal, around the industry mean (25.765). P/E Ratio (188.000) is within average values for comparable stocks, (75.374). Projected Growth (PEG Ratio) (0.000) is also within normal values, averaging (1.622). Dividend Yield (0.000) settles around the average of (0.046) among similar stocks. P/S Ratio (0.364) is also within normal values, averaging (52.338).
The Tickeron SMR rating for this company is (best 1 - 100 worst), indicating weak sales and an unprofitable business model. SMR (Sales, Margin, Return on Equity) rating is based on comparative analysis of weighted Sales, Income Margin and Return on Equity values compared against S&P 500 index constituents. The weighted SMR value is a proprietary formula developed by Tickeron and represents an overall profitability measure for a stock.
The Tickeron Profit vs. Risk Rating rating for this company is (best 1 - 100 worst), indicating that the returns do not compensate for the risks. EGHT’s unstable profits reported over time resulted in significant Drawdowns within these last five years. A stable profit reduces stock drawdown and volatility. The average Profit vs. Risk Rating rating for the industry is 95, placing this stock worse than average.
Notable companies
Industry description
Market Cap
High and low price notable news
Volume
Fundamental Analysis Ratings
The average fundamental analysis ratings, where 1 is best and 100 is worst, are as follows
Advertisement
General Information
a provider of voice over internet protocol solutions
Industry PackagedSoftware
Advertisement