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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.
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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.
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