The Packet 8 Meme

For a few days, I have seen a Packet 8 meme form slowly. Most VoIP bloggers have started to dig their teeth into the prospects of the company, which is a proxy for what stock market punters really think about VoIP. Packet 8 is the video service of 8X8 Inc which trades under the ticker, EGHT. I say punters, because clearly the big investors are not invested in this company and it is mostly owned by the retail investors or the day traders. [Look at its daily trading patterns and you will realize that for yourself.] Back to the meme – I guess it is mostly because the company announced earnings (rather lack there off) recently and got most of us interested in taking a closer look at its business prospects. Mark Evans thinks that company’s sales per day per subscriber ($1) makes 8×8’s $130-million market capitalization looks more and more suspect. Sure hope Jennifer Garner didn’t take 8×8 shares for appearing the company’s new advertising campaign. Mark also asks the all important question, if not 8X8 then who is the VoIP service provider proxy on the stock market? Tom’s readers are complaining about quality of calls, and some are even experiencing dropped calls as well. Andy Abramson points out that Packet 8 resellers are having problems and the network is going through some serious degradation. This might result in a deal with Sprint, going beyond the current arrangements the company has with Level 3 Communications.


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