Watch Vonage Die

Vonage went IPO last week. The initial offering was $17 a share. By the end of the day it had dropped 12.6% to $14.85. This was the worst first-day drop for any IPO this year. James DeStefano, and IPO analyst, believed the drop to be caused by a focus by investors on their long term business model – heavy advertising spending to get customers. Vonage is not earning a profit at the current time and doesn’t expect that to change soon. At the same time, competition is increasing. Could it really be a lack of morals and ethics in their customer relationships?