Vonage IPO Update
Vonage (NYSE: VG) shares have fallen 24% from 17.25 to 13.00 since the introduction of VG to the stock market on Wednesday.
Stock traders and investors are pricing in increased VOIP competition and high marketing costs, driving down the price. The future does not look so bright for Vonage. Some analysts believe Vonage IPO was overpriced, with many believing the price should have been around $10 per share.
The Vonage IPO has been the worst introduction this year, falling 13% on it’s first day of trading, and falling 24% total in two days of trading. Not very impressive.
I personally don’t like any VOIP stocks, mostly due to heavy competition. I am going to stay away from VG.