backtop


Print

Vonage has a hard time convincing analysts and investors that it'll do well going forward

This week marked the debut of Vonage on the stock exchange market. The company announced its initial public offering (IPO) to raise funds for expansion and development. Unfortunately, at the IPO, while most other companies see a huge increase in investments and stock price, Vonage's stock price takes a massive beating.

Analysts are saying that they are having difficulty finding reasons why Vonage is competitive to other similar services. Some are predicting that costs will be raising this year and Vonage's advantages are still small compared to some others. During its opening day, Vonage shares dropped $2.15 which is over 14%.

Investors were also looking at Vonage's financial performance, which has been dismal since the company launched in 2001. Up until March 31st of this year, Vonage was still reporting losses and had been reporting losses every single quarter. Many analysts previously predicted that Vonage's IPO would actually be lower than what it managed on opening day. They were surprised to see that Vonage had actually manage to raise half a billion dollars. While companies like Vonage are likely to recruit more customers as more people opt for high-speed Internet, cable and telephone companies are beginning to put together very attractive data/voice packages.

Investors tend to make most of their decisions on forward-looking statements. Unfortunately for Vonage, analysts predictions are going into a bad direction.




"I mean, if you wanna break down someone's door, why don't you start with AT&T, for God sakes? They make your amazing phone unusable as a phone!" -- Jon Stewart on Apple and the iPhone
Related Articles






Most Popular Articles







botimage
Copyright 2018 DailyTech LLC. - RSS Feed | Advertise | About Us | Ethics | FAQ | Terms, Conditions & Privacy Information | Kristopher Kubicki