7 Most Popular AI Penny Stocks Under $5 To Avoid

3. 8×8, Inc. (NASDAQ:EGHT)

Share Price as of June 21: $1.75

Year-to-Date Returns as of June 21: -34.46%

Number of Hedge Fund Holders: 16

8×8, Inc. (NASDAQ:EGHT) is one of the 7 most popular AI penny stocks under $5 to avoid. On June 17, the company announced the conclusion of share repurchase activity, which it deems part of its capital allocation strategy. The company bought one million shares of its common stock for an aggregate price of around $1.85 million. Further details show that these transactions occurred in the open market between June 6, 2025, and June 13, 2025.

According to the official statement, the repurchases were executed under an existing share repurchase program authorized by the company’s Board of Directors in 2017. Also, this particular activity is the first time 8×8 has repurchased equity not associated with a financing activity since October 2017.

The company said the repurchases have three key objectives. First, to manage dilution from employee equity and stock purchase programs over time. Second, to return value to investors. Third, optimize the company’s capital structure through disciplined capital allocation.

8×8, Inc. (NASDAQ:EGHT) is a cloud communications company. It provides voice, video, chat, and contact center solutions through its unified communications-as-a-service (UCaaS) and contact center-as-a-service (CCaaS) platforms. Key offerings include 8×8 Work, 8×8 Contact Center, and 8×8 Engage, which help businesses manage internal collaboration and customer engagement across digital channels.