8x8, Inc. (NYSE:EGHT)

25%+ A

8x8 Inc. (EGHT) is laser-focused on helping businesses create high-functioning "virtual offices."

Virtual offices, of course, mean that workers are physically in different parts of a building, or anywhere in the world, really.
But EGHT makes these remote workspaces look and feel as if teams are actually working in close proximity.

EGHT’s services include cloud-based video conferencing with high-definition video and audio.

The company also has a team messaging platform that makes it easier to share ideas, designs, special files and other kinds of information.

All of these services are hosted by EGHT's cloud network. And this is a plus, because customers don't have to worry about installing expensive servers or making sure that equipment is up and running.

The services can be used through televisions, desktop computers and even mobile devices.

Offering so many different ways to connect means the services are available to many different workers in many different places.
So workers can be just as productive and effective day in and day out whether they’re in traditional offices… on the road… or working from home (which many of will do long after the coronavirus crisis has passed).

In fact, the more I learn about EGHT, the more I see why a buyout would make perfect sense for Apple!

Evidence a Buyout Offer Is on the Way

Last week, EGHT reported strong earnings that beat investor expectations. But the stock pulled back despite the healthy report.
It seems investors weren't all that enthused when management said next quarter’s revenues would "only" grow by 24-26%.
While that would be a tremendous growth rate for most businesses, investors were hoping the work-from-home trend would lead to much stronger guidance.

Quite frankly, there is evidence the company's growth will be much stronger than management suggests. But in today's uncertain environment, many businesses are choosing to under-promise and hopefully over-deliver in the weeks and months ahead.

Still, the stock’s pullback gives AAPL a perfect opportunity to negotiate an attractive buyout price.

It will still need to be well above the current stock price to get shareholders to bite… but maybe not as high as it would have had to pay if EGHT were trading at all-time highs.

There is evidence that big trades are being placed in the options market. This often happens when insiders know a deal is about to happen and leak the news to friends or family members.

Investors with advance knowledge of a deal may be placing options trades so they can profit when it is announced.

A reasonable target buyout price for EGHT is $26.50, which is near where the stock topped out last year.

That would give shareholders a very attractive 80% gain from its current price. But it would also give AAPL a chance to own EGHT's work-from-home technology for less than what the stock was trading for about a year ago.