Vonage Stock Continues to Plummet

The Vonage stock has continued to plummet over the past few weeks and on Wednesday it dropped to $12.50 a share. This is more than a 25 percent loss from last Tuesday's $17 a share IPO price. The continuing fall is mainly due to a number of investors bailing from the company. The recent drop is speculated to be linked with the recent pressure on the VoIP market from Skype's new Free calls offer in the USA and Canada. However some still argue that services offered by Skype and the services offered by Vonage do not drastically infringe on each other and that they currently target slightly different markets.

The fact still remains that Vonage is yet to make a profit and this does not look set to change anytime soon. However VoIP usage is growing at an exponential rate but how much of a market share Vonage can take from this with such large competition is up for debate. With more VoIP companies popping up frequently the road ahead for Vonage looks like a bumpy one.