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: price rose above 50-day moving average on June 24, 2025
EGHT moved above its 50-day moving average on June 24, 2025 date and that indicates a change from a downward trend to an upward trend. In of 36 similar past instances, the stock price increased further within the following month. The odds of a continued upward trend are .
Technical Analysis (Indicators)
Bullish Trend Analysis
The Momentum Indicator moved above the 0 level on June 26, 2025. You may want to consider a long position or call options on EGHT as a result. In of 90 past instances where the momentum indicator moved above 0, the stock continued to climb. The odds of a continued upward trend are .
The Moving Average Convergence Divergence (MACD) for EGHT just turned positive on June 04, 2025. Looking at past instances where EGHT's MACD turned positive, the stock continued to rise in of 52 cases over the following month. The odds of a continued upward trend are .
The 10-day moving average for EGHT crossed bullishly above the 50-day moving average on June 12, 2025. This indicates that the trend has shifted higher and could be considered a buy signal. In of 10 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 .
Following a 3-day Advance, the price is estimated to grow further. Considering data from situations where EGHT advanced for three days, in of 246 cases, the price rose further within the following month. The odds of a continued upward trend are .
The Aroon Indicator entered an Uptrend today. In of 182 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 RSI Indicator has been in the overbought zone for 1 day. Expect a price pull-back in the near future.
The Stochastic Oscillator has been in the overbought zone for 2 days. Expect a price pull-back in the near future.
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 .
EGHT broke above its upper Bollinger Band on June 30, 2025. This could be a sign that the stock is set to drop as the stock moves back below the upper band and toward the middle band. You may want to consider selling the stock or exploring put options.
The Tickeron PE Growth Rating for this company is (best 1 - 100 worst), pointing to outstanding 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 Price Growth Rating for this company is (best 1 - 100 worst), indicating steady price growth. EGHT’s price grows at a higher rate over the last 12 months as compared to S&P 500 index constituents.
The Tickeron Valuation Rating of (best 1 - 100 worst) indicates that the company is significantly 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 (3.016) is normal, around the industry mean (31.531). P/E Ratio (834.511) is within average values for comparable stocks, (164.477). Projected Growth (PEG Ratio) (0.554) is also within normal values, averaging (2.732). Dividend Yield (0.000) settles around the average of (0.030) among similar stocks. P/S Ratio (0.502) is also within normal values, averaging (62.143).
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 88, placing this stock worse than average.
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General Information
a provider of voice over internet protocol solutions
Industry PackagedSoftware
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