Vonage Stock Fades Badly to End Surreal Week

Earlier this week, I commented on the bewildering run enjoyed by Vonage’s stock.

Before the surge, the VoIP company made some minor announcements about the extension of a service offering to international markets and its push to get an application on the iPhone, but those didn’t seem to provide sufficient reason for the rip-roaring ride the stock took up the charts.

Vonage’s fundamentals haven’t changed. It’s still a company hard pressed competitively by wireless service providers on one side and triple-play carriers and cable MSOs on the other. If Vonage tries to transform itself into a mobile-VoIP play, it will go up against Google, Skype, and many others. It’s boxed in, and its path to sustainable prosperity isn’t obvious.

Now, after the baffling and blistering rise of its stock, Vonage has seen its shares fade and plummet just as abruptly as they shot skyward.

We can wonder what games, if any, were being played behind the scenes.

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One response to “Vonage Stock Fades Badly to End Surreal Week

  1. It’s obvious to me that there was a behind-the-scenes (and probably illegal) plan to push up the stock price. Maybe related to the plan Vonage submitted April 27 to the NYSE on how they would get the stock price back above $1. Do you suppose that plan had a 4-month deadline?

    Hope someone investigates.

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