Eddy Elfbenbein points out that Vonage has admitted it may never, ever be profitable.
Check out this gem from a Reuters article on Vonage:
Vonage has acknowledged that it may never be profitable and is viewed with skepticism by many analysts, who cite the growing competition it faces in providing voice-over-Internet protocol (VoIP) services.
"We haven't liked the offering since we first saw the registration," said David Menlow, president of IPOfinancial.com. "There are so many other companies out there that can deploy this strategy or this product in a heartbeat."
For the love of carbs! May never be profitable??
On the other hand, last week over a late night at Houston's (mmm, spinach dip) we asked one of our hedge fund pals about the IPO. He said his market guys told him it was a good short term bet and so he was going in on the IPO. Not with his fund's money but with his own. But, then again, he used to be a lawyer so you should probably take his advice with a grain of salt.
The Vonage IPO [CrossingWallStreet.Com]
Is Vonage Screwed?