With a share price under $3 and strong hedge fund interest, 8×8, Inc. (NASDAQ:EGHT) secures a spot on our list of the 10 Best AI Stocks to Buy Under $3.
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On August 5, 2025, 8×8, Inc. (NASDAQ:EGHT) released its results for Q1 2026. The company reported strong performance, achieving year-over-year growth for the first time in nine quarters. The service revenue for the quarter reached $176.3 million, which was above the high end of guidance and marked a 2% YoY improvement. This was driven by usage-based revenue, which increased by 30%, particularly due to CPaaS solutions.
Meanwhile, 8×8, Inc. (NASDAQ:EGHT) reported a 67.8% gross profit dip due to the shift toward lower-margin consumption-based services. Yet, the company’s focus on innovation paid off, as its 8×8 Voice for Teams license sales grew 30%. Furthermore, NOTE was named a top 5 Operator Connect partner. The company’s financial health was bolstered by a positive cash flow of over $11 million and a 40% debt reduction since 2022. This quarter was its 18th straight period of positive operating cash flow. Looking ahead, FX pressures and continued challenges from the Fuze platform are expected to impact the company’s short-term guidance.
8×8, Inc. (NASDAQ:EGHT) helps businesses deliver smarter customer experiences with its AI-powered communication and customer engagement solutions. It is included in our list of the best AI stocks.
While we acknowledge the potential of EGHT as an investment, we believe certain AI stocks offer greater upside potential and carry less downside risk. If you're looking for an extremely undervalued AI stock that also stands to benefit significantly from Trump-era tariffs and the onshoring trend, see our free report on the best short-term AI stock.
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Disclosure: None.
