Vonage IPO Disappoints

By Johns Wu on May 25, 2006

Last year, when I first heard about the Vonage IPO, I had expected it to be a blockbuster stock. I am really bullish on VoIP, but it looks like the markets aren't.

The Vonage IPO today was disappointing as shares closed at $14.85, a fair amount below the IPO pricing of $17.

This entry was posted on Thursday, May 25th, 2006 at 1:16 am and is filed under Market News. You can skip to the end and leave a response. Pinging is currently not allowed.

3 Responses to “Vonage IPO Disappoints”

By Eyal on May 25th, 2006 at 3:00 am

Look at all the other VOIP services out there - there are so many of them. So prices are starting to come down - the outlook is not that good. Skype is offering free calls through the end of the year - so with a competition like that - I’m not sure any of this services will make a lot of money.

By Danny hates Vonage on May 25th, 2006 at 9:18 am

dude, why are you bullish??? It may be the technology of the moment, but it’s already steeped in the commodificaton process: It’s going to be an ugly, fragmented industry (if more VoIP wannabees enter the market) until the technology matures. At some point, the larger players will have to snap up all the unprofitable losers.

The cap ex/intial costs to set up a network are very high as well, this is NOT an attractive industry.

If I were you (you may have already), I’d re the S-1 (i.e. prospectus) for the Vonage IPO filed in 05. Here is the link — enjoy!

http://sec.gov/Archives/edgar/data/1272830/000104746906001567/a2167036zs-1.htm#toc_cy1470_2

By sl on May 25th, 2006 at 11:53 am

You’d think the words INTERNET TELEPHONY alone would warrent a warmer reception of this IPO.

Hrmph.