I must have been so, so wrong. While I've had very little good to say about Internet telephony provider Vonage
Normally, a service provider would have its stock jump because of a huge increase in new subscribers, or improved metrics such as churn or ARPU. But Vonage actually showed very weak fundamentals, and there was little surprise in the financials that the company guided to only a few months back. So what's all the fuss about?
Apparently, investors were encouraged by the company's indication that a workaround for Verizon's
The company also indicated that it was going to get better at retaining customers by improving customer service and offering new features on its plans. Good thing, because churn is still increasing; it went up to 2.4% this quarter as the company struggled to add 166,000 net new subscribers.
But while investors have given a little life to beleaguered shares, Vonage's problems are far from over. Even if the company can successfully work around the three Verizon patents, Sprint Nextel
Fundamentally, Vonage still has to wrestle with the competition dragon as well, mostly from cable companies like Comcast
For related Foolishness:
Fool contributor Dave Mock found that crab cakes look nothing at all like he imagined. He owns no shares of companies mentioned here. Dave is the author of The Qualcomm Equation. The Fool has a disclosure policy.