Shares of VoIP pioneer Vonage were driven up in value yesterday, and they were on a tear again early today.
The problem is, nobody seems to know why the shares are surging. Some speculate that the stock’s recent upward mobility relates to strong adoption of its recently expanded “Vonage World” international-calling service. The service went from availability to 13 countries to applicability for calls to 73 countries — with India, China, and Mexico now covered.
It’s entirely possible that the expanded “Vonage World” is experiencing a spike in adoption. But I suspect we’re seeing an old-fashioned momentum rally here.
Nothing essential has changed for Vonage, and it faces the same intractable business challenges and competitive threats that were arrayed against it last week.
I’ll advise the independent investors in our midst to follow the same advice Sergeant Phil Esterhaus proffered to his fellow officers in the squad room of Hill Street Blues: “Hey, let’s be careful out there.”