Why Did Vonage Shares Just Skyrocket?

Is it the new patents, is Vonage for sale? What’s the latest gossip?

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Unified Communications

Published: September 15, 2017

Rebekah Carter - Writer

Rebekah Carter

According to information from S&P Global Market Intelligence, shares for Vonage Holdings gained around 25.6% in August. Combine that with the incredible second-quarter report that the digital communication company provided in early August, and it’s safe to say that Vonage is pulling ahead of the crowd. So, what’s inspiring this massive upturn?

Part of the reasoning could be linked back to the exciting second-quarter changes that Vonage experienced recently, with a 7.7% sale increase year-over-year, and an increase in adjusted earnings by 40%. Both figures out-shone the Wall Street target set for Vonage and established the business as a serious competitor, driven by 23% organic growth in its segment. However, if you check out some of the conversations around Vonage in the stock forums, you might find some other rumours about the brand growth.

Disclaimer: We have no behind-the-scenes knowledge into Vonage, and are simply sharing the latest comments and news as we see it.

Maybe It Has Something to Do with the New Patents?

As you may have read in our recent news report, Vonage has been seeing some serious growth from an innovation perspective lately, after being granted 19 new milestone patents for their communication services. The patents include a range of new solutions designed to deliver more intuitive UC experiences for customers, including services for mapping incoming calls, and delivering a new routing process between traditional telephony providers and VoIP.

Lately, Vonage has been building their business around a focus on SMB clients. However, they also signed four new contracts for enterprise companies during the second quarter, which could mean that they’re branching out to a wider audience, with new room for growth.

Other Rumours

A little digging into the Vonage stock conversation reveals a range of other suggestions about why Vonage’s shares might be growing. For instance, one user commented, “Maybe it has something to do with Twilio’s Q2 report?”

Indeed, after a somewhat quiet 2017, Twilio saw their stock increase by huge amounts in early August, right after reporting insane revenues for its second quarter. Twilio grew its top line by 48% year over year and topped the analytic estimates laid out for it by about $10 million. On the other hand, the stock increases could be caused, in part, by Vonage’s decision to join S&P SmallCap 600.

Other rumours continue to suggest that Vonage might be considering some kind of sale or partnership following their recent success. Of course, right now, there’s no information available on the market that would support this gossip. We can only wait and see what comes next for Vonage in this surprisingly versatile market.

I have no position in any of the stocks mentioned above, and UC Today also has no position in the stocks mentioned above. 

 

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