Why 8x8, Inc. Stock Popped Today

Is 8x8's jump meaningful? Or just another movement?

Jul 24, 2014 at 3:25PM

Although we don't believe in timing the market or panicking over market movements, we do like to keep an eye on big changes -- just in case they're material to our investing thesis.

What: Shares of 8x8 (NASDAQ:EGHT) rose as much as 16% Thursday after the cloud-based contact center specialist announced inline fiscal first-quarter 2015 results.

So what: Quarterly revenue increased 30% year over year, to $37.9 million, which translated to adjusted net income of $3 million, or $0.03 per diluted share. Both figures were roughly in line with expectations, which called for earnings of $0.03 per share on slightly lower sales of $37.5 million.

In addition, 8x8 told investors they now expect fiscal 2015 revenue to grow by "at least 25%" over last year, with adjusted net income as a percentage of revenue in the "high-single digit range." Again, both figures are roughly in line what what Wall Street was modeling.

Now what: So why the pop? First, it helps that shares had fallen by around 30% during the previous three months going into yesterday's close, thanks largely to a mixed bag when 8x8 announced its fiscal fourth-quarter earnings in May. At the time, management expected revenue to grow "approximately 25%" in fiscal 2015, so -- without being too specific -- today's verbiage represents a slightly more optimistic tone. As it stands, though, I personally prefer watching this one from the sidelines for now.

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Steve Symington has no position in any stocks mentioned. The Motley Fool has no position in any of the stocks mentioned. Try any of our Foolish newsletter services free for 30 days. We Fools may not all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. The Motley Fool has a disclosure policy.

A Financial Plan on an Index Card

Keeping it simple.

Aug 7, 2015 at 11:26AM

Two years ago, University of Chicago professor Harold Pollack wrote his entire financial plan on an index card.

It blew up. People loved the idea. Financial advice is often intentionally complicated. Obscurity lets advisors charge higher fees. But the most important parts are painfully simple. Here's how Pollack put it:

The card came out of chat I had regarding what I view as the financial industry's basic dilemma: The best investment advice fits on an index card. A commenter asked for the actual index card. Although I was originally speaking in metaphor, I grabbed a pen and one of my daughter's note cards, scribbled this out in maybe three minutes, snapped a picture with my iPhone, and the rest was history.

More advisors and investors caught onto the idea and started writing their own financial plans on a single index card.

I love the exercise, because it makes you think about what's important and forces you to be succinct.

So, here's my index-card financial plan:


Everything else is details. 

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