May 24, 2006
The Vonage IPO is faltering, trading at $15.10 or $1.90 below the opening $17 price. This is a 11% price drop. I just did a Yahoo Quote lookup and pasted the chart to the right. Not looking good even though it has ticked up a bit. Too bad Skype didn't do an IPO instead of selling to eBay. Now that would have been an IPO that would have rocked the VoIP world and perhaps setup Vonage for a much better IPO performance.
According to the WallStreet Journal
, "If the stock's losses remain at this level, it will be the worst IPO debut since wireless equipment maker Gigabeam Corp. lost 21% on its first day of trading in 2004, according to data tracker Thomson Financial."
I'm not one to say I told you so
, so I won't. Many in the VoIP blogosphere called this Vonage IPO failure, so I'm not the only one. The stock stading day is still young, so it's possible Vonage could rebound. Although I have access to the Vonage IPO since I am a customer, I'm passing on this one