See the full article for “… the rest of the story”
Shares of the Internet-calling company gained nearly 200 percent the week of Aug. 24, and that's after a 31 percent drop on Aug. 28, when the shares closed at 1.37. Between Aug. 12 and Aug. 26, the stock rose more than 470 percent. Vonage shares have enjoyed a 373 percent rally so far in August, a month when the Nasdaq composite index has gained just 2.5 percent.
The basics of Vonage's business don't explain the wild ride. On Aug. 5, the company swung to a $2.3 million second-quarter profit as sales fell a modest 3 percent, to $220 million. The company may be the beneficiary of future Federal Communications Commission rules that make it easier for Web-calling software to appear on mobile phones, but any such regulations would likely not appear before next year.
Investors are speculating that potential acquirers are getting out the green eyeshades on Vonage and other Web-calling software companies such as Skype, which owner eBay hopes to sell or spin out.