Vonage Shares Overreact to AppStore News

We already know that it doesn’t take much impetus to move Vonage;s stock. We learned last week that the company’s shares suffer from the market equivalent of bipolar disorder, going sharply up and then down for no discernible reason.

Vonage stock was up to its old tricks after hours tonight, shooting up 15 percent. Again, the stock seems to require only the slightest provocation to launch into hyperactivity.

The rationale for tonight’s move was news that Apple had approved Vonage’s mobile VoIP application for the AppStore, where it will be available for download to the iPhone and iPod Touch. Vonage says it is conducting a beta test and that general availability of the application will be announced at a later date.

Apparently that’s a good enough reason to buy for some investors, even though other evidence suggests that Vonage remains between a rock and a hard place competitively, regardless of whether it has an application that runs on Apple’s wildly popular mobile devices.

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