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Byline: Eric Benderoff and Mike Hughlett
May 25--The disappointing Wall Street debut of what might have been the next high-tech darling offered a startling look at how fast opinions can change in the digital age.
Until Wednesday, a buzz surrounded Internet phone provider Vonage Holdings Corp., which offered a promising technology that could radically alter how people communicate.
But on its first day of trading, Vonage was judged to be just another company peddling a me-too commodity. Met with tremendous skepticism, its initial public offering tumbled nearly 13 percent. Shares that were priced at $17 on Tuesday evening shed $2.10 on Wednesday to close at $14.85.
"The biggest concern investors have, and the biggest problem I have, is the level of competition in the voice telephone business," said Todd Rethemeier, a stock analyst at Soleil Securities.
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Source: HighBeam Research, Vonage cut off on stock opening: Web phone firm sees IPO shares...