Bloomberg reports that Vonage’s stock rose 36% over the course of three days, the biggest rally in the company’s history, after it announced that it had submitted an iPhone app for Apple’s approval. While the app has yet to be approved, this is due to a technical problem that will soon be fixed and Vonage seems to be confident that it will be approved soon. Vonage hopes an iPhone app will help it to increase its subscriber numbers, something that the company desperately needs to do. At its IPO, Vonage was worth $17 per share, but had since fallen to below one dollar. This put it at risk of being delist from the New York Stock Exchange, which requires that stocks have a minimum value of one dollar. Since the announcement of the iPhone app, Vonage’s stock prices have jumped as high as $2.58, though they have since fallen to $2.17 as of the end of the trading day on 26 August 2009.
Despite all of the recent complaints about Apple’s handling of the App Store, investors obviously still believe that an app on the Store can bring great revenue to a company. With the large amount of iPhones sold, developing apps for the platform will continue to be a profitable business, although it still remains to be seen how much of an impact Vonage’s app will have on the number of subscribers to its service.
[Image from finance.google.com]
0 Responses
Stay in touch with the conversation, subscribe to the RSS feed for comments on this post.