What Happened?
Shares of cloud communications provider 8x8 (NASDAQ: EGHT) jumped 6.8% in the morning session after the company announced a strategic reseller partnership with Modica Group to expand its customer experience capabilities across the Asia-Pacific region.
This new link-up integrated 8x8's secure video service into Modica's OMNI platform, a system for intelligent messaging. The move let businesses launch high-quality video sessions directly from common messaging apps like SMS and WhatsApp, with no downloads needed. Think of it as a frictionless way for a bank or airline to start a face-to-face video chat with a customer instantly. The partnership aimed to tap into the rising demand for mobile-first video engagement, especially in sectors like finance and government.
The integration was already being tested by clients in Australia and New Zealand, showing early real-world use. This deal marked the first of several planned joint initiatives, with both firms intending to collaborate on voice and security services in the future.
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What Is The Market Telling Us
8x8’s shares are extremely volatile and have had 49 moves greater than 5% over the last year. In that context, today’s move indicates the market considers this news meaningful but not something that would fundamentally change its perception of the business.
The previous big move we wrote about was 5 days ago when the stock gained 8.1% as investors scooped up equities, shaking off the initial concerns inferred from the Fed's dot plot, with tech stocks leading the charge.
As a reminder, the Federal Reserve cut its benchmark interest rate by 25 basis points yesterday and signaled that more reductions could come before year-end and beyond. Initially when the cut was announced and Fed Chair Powell held his press conference, there was a pullback in the market as the Fed's "dot plot" revealed that only one cut was likely for 2026. This was below the three cuts that had been priced into the markets. This was the first interest rate cut of 2025, a move investors had widely anticipated. In response to the decision, stocks rose significantly, positioning major indexes like the S&P 500 and Nasdaq to open at record levels.
The Fed's decision was influenced by signs of a weakening labor market. Lower interest rates are generally seen as positive for stocks because they reduce borrowing costs for businesses and make fixed-income investments like bonds less attractive by comparison, driving capital into the equity market. While Fed Chair Powell noted the path forward has risks, the prospect of looser monetary policy has fueled optimism on Wall Street.
8x8 is down 11.7% since the beginning of the year, and at $2.35 per share, it is trading 32.3% below its 52-week high of $3.47 from February 2025. Investors who bought $1,000 worth of 8x8’s shares 5 years ago would now be looking at an investment worth $156.67.
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