Vonage IPO tanks on first day of trading

Business perspective, it’s great and I love to support it. From an investor’s perspective… ehhh… don’t even bother.
In actuality, I did consider the IPO at the beginning of the customer acknowledgement and was planning on purchasing some shares. But when eBay’s Skype announced free calls for the rest of 2006, I figured it was time to bail. Boy was it the right decision.
Opening at $17 a share, there was nowhere for the stock to go but down. It stabilized around the $14.50s but this is probably due to the money issues that Vonage has been experiencing due to the marketing campaigns. What’s interesting is that the technology and the consumer support has been great with this company, but it struggles due to dwindling customer growth and E-911 issues due to the Baby Bells refusing to cooperate. The former is the reason for the money drain via marketing, and the latter is just stubborness by the Bells.
All in all, I’ll continue to be a supporter of Vonage, but until they stabilize their finances and get back into the black, they face some stiff competition with “free” on the side of Skype. Never underestimate new developments to swing an investor.
Via ABCNews