Vonage shares see 14 percent price drop

GHoosdumGHoosdum Icrontian
edited May 2006 in Science & Tech
Vonage, the VOIP company which had its stock debut on the open market only yesterday, has seen a 14 percent drop in share price by midday Wednesday.
Vonage has acknowledged it may never be profitable and is viewed with skepticism by many analysts, who cite the growing competition it faces in providing voice-over-Internet protocol (VoIP) services.

"It's very hard to see what their competitive advantage is," said Richard Greenfield, an analyst at Pali Research. "We basically believed, pre-IPO, that the price should be $10 or less."

The IPO, which priced Tuesday at $17 a share, the midpoint of a previously established range, raised $531 million. The Holmdel, New Jersey-based company said it plans to use the proceeds to fund expansion and marketing and repay debt.
Source: Reuters

Comments

  • LeonardoLeonardo Wake up and smell the glaciers Eagle River, Alaska Icrontian
    edited May 2006
    Vonage had enormous losses last year and this year. Great concept, but other VOIP services are taking the market.
  • GHoosdumGHoosdum Icrontian
    edited May 2006
    Leonardo wrote:
    Vonage had enormous losses last year and this year. Great concept, but other VOIP services are taking the market.

    You mean the ones that offer lower prices and better customer service? I wonder why they're taking higher market share than Vonage?
  • airbornflghtairbornflght Houston, TX Icrontian
    edited May 2006
    Dont forget the free ones. If you have high speed internet, you most likely have a computer, so why not just use your computer as a phone, for free.
  • JengoJengo Pasco, WA | USA
    edited May 2006
    can you guys reccomend cheaper better VOIP Services?

    Cause im kind of looking for one.
  • airbornflghtairbornflght Houston, TX Icrontian
    edited May 2006
    you can use skype, its free for now.
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