8 x 8 INC (EGHT)

[TechKim]

You ain't seen nothin' yet

Anders Bylund (8x8): If you want to match Costco's extraordinary returns starting from the early 1980s, you have to start with a small business, largely unknown, that isn't an obvious winner yet. In 1982, Costco had yet to open its first store and the Price Club merger that made it a public company was more than a decade ahead.

Enterprise communications specialist 8x8 is the closest I can get to that type of champing-at-the-bit early investment opportunity. Sure, the company has been around since 1987 and joined the public stock market way back in 2002, but the business opportunity in internet-based voice and video communications services feels fresh and almost entirely untapped, even now.

This company's services combine low cost and high quality, thanks to a lean, mean cloud-computing infrastructure. Business is going gangbusters. In the recently reported second quarter, revenues rose 15% year over year, with a 33% surge in service orders from mid-market and enterprise customers.

The company has formed several distribution and cross-selling partnerships, and R&D budgets are rising as fast as the top-line sales. To me, that combination signals a tech company that wants to hang around for the long haul. It's all about innovation and market growth.

8x8's products and services have been gaining traction in the marketplace in recent years, which is why sales and share prices are skyrocketing today. I'll admit that it will be tough to match Costco's legendary long-term returns, but 8x8 could come close.

Anders Bylund, Steve Symington, and Timothy Green, The Motley Fool
Motley FoolOctober 19, 2017
https://finance.yahoo.com/news/3-stocks-look-just-costco-214900772.html