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Vonage Holdings Corp. (VG)

NasdaqGS - NasdaqGS Real Time Price. Currency in USD
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18.70+0.22 (+1.19%)
At close: 04:00PM EDT
18.70 0.00 (0.00%)
After hours: 04:30PM EDT
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  • R
    Ryan
    I was a big Vonage backer a few years ago before Covid hit. I remember being appalled at the skewed valuations between Vonage / Twilio / RingCentral. I ended up divesting from Vonage, but it just goes to show that the old Buffet adage is true. "In the short run, the market is a voting machine, but in the long run, it is a weighing machine."
  • N
    Nightstick
    Thank you "Ericsson." At this point, I think it's become irrelevant to many whether or not you consummate the buy-out. Salvation was in the offer. All comps now down over 70%. No reason not to believe this is a $6 or $7 stock should the deal collapse.
  • J
    Jeffrey
    I was a long term bull on VG and sold all my stock when the Ericsson came up and then the Russian invasion in Ukraine happened. I figured Ericsson might use the change in market and the war to try to use a MAC to get out of the deal and the downside was to great to take a risk. Having read the prior comments, I do think the risk is low that the deal breaks but if it does I think the drop will be much worse than most expect. VG stock was at around $16 off of a run that probably started with buyout rumors. The stock had spent most of the year prior below $14. Given how all of the comps have lost more than half of their market caps, I would not be surprised to see this stock drop to high single digits. The problems from a valuation standpoint VG had before the deal still exist (growth rate, consumer, margins). I consider myself lucky to have benefited from Ericsson deal before the market got crushed and happy to have taken my profit and feel there is no need to try to squeeze out the last 60 cents. That said, good luck to all current holders.
  • P
    Peter
    Don't know how active this board is anymore, but I'm wondering what folks think would happen to the stock price if the deal falls through. There would be a nice $200M payout, but considering the overall state of tech stocks, where do you think VG stock would be? We haven't spoken at all about their recent earnings, but that would be front-and-center if the deal falls through. My guess is VG stock would probably lose about 10%-20% -- which might be an overreaction.
  • A
    AndreC
    The potential ouster of Ericsson (NASDAQ:ERIC) CEO Börje Ekholm appears to be less likely in response to the recently disclosed Iraq issues in connection with the Swedish telecom company, according to a Jefferies analyst.

    While a further fine from the Dept. of Justice is "almost definite," a loss of business in the U.S. seems unlikely as is a block of the company's purchase of Vonage (NASDAQ:VG), Jefferies analyst Janardan Menon, who has a hold rating on the shares, wrote in a note.

    Menon's comments come after Ericsson (ERIC) held an hour long call with its investors on Tuesday ahead of its annual meeting scheduled for next week. On Monday, Ericsson's board affirmed its "full confidence" in Ekholm as the company navigates controversy over its dealings in Iraq.
  • B
    Bobby S
    Eric CEO from their earnings conference call: "So we continue to work to close the Vonage acquisition during the first half of 2022."
  • B
    Bobby S
    My guess is the stock would drop to about $15. Slow rise after that. Couple of years before it hits 20 again. Just my guess.
  • J
    Jake
    Haven't posted in years after selling my shares back around $7. Nice play for the longs that held out. Lucky for Citron he got his IPO price back and then some just in time too cause all tech is cratering and this would have followed.
  • J
    Joseph
    I just sold my last 875 shares. With all the uncertainty with the Ericsson situation and the crisis in Ukraine, I didn't want to lose my gains. Good luck to all with your other endeavors!
  • P
    Peter
    More bad Ericsson stories today, and the specter of them not getting approval to buy VG was raised again, even by the ERIC CEO. If the deal is killed, VG is in line to get a $200 million kill fee from Ericsson, which is about 50% of VG’s quarterly revenue. I wonder what all this would mean for the VG stock price if it happens. $200 million is a nice parting gift, but would anyone else step up to acquire VG?
  • i
    it's closed
    is this the beginning of the move to $10
  • J
    Joseph
    Great to associate with you Bronson. You were very helpful guiding many of us through this Vonage journey. Thanks for your insight. Let me know down the road when things settle down what's the next good investment!
  • P
    Peter
    Geez, the news on Ericsson keeps getting worse. Bloomberg story today says “Ericsson shares risk becoming "uninvestable" in the foreseeable future according to Citibank analysts, after a new report detailed the Stockholm-based company's involvement in making potential payments to terrorist organization ISIS to facilitate the sales of its goods in Iraq.”
    Another good decision by Rory: Taking cash for VG and not Ericsson stock!
  • P
    Peter
    While I initially thought Rory could have held out for more, the way things look now shows it was the right choice and fortunate timing. Considering the tech wreck and the latest geopolitical nightmares, Vonage stock might be under $10 right now had they not made the deal with ERIC.
  • k
    karlo
    Shares of Vonage Holdings (VG) jumped after Scott Deveau of Bloomberg reported that activist investor Jana Partners has called on the company to hire advisers to explore strategic alternatives, including a possible sale of all or parts of the business. People familiar with the matter told Bloomberg that Barry Rosenstein's Jana, which owns about 4% of Vonage, has discussed its views with the company and fellow shareholders after a previous review of the company's consumer business failed to result in a sale. Jana believes Vonage's current corporate structure prevents its underlying businesses from achieving their true value, sources told Bloomberg. Shares of Vonage are up 5% to $14.12 following the report.
  • R
    Ryan
    Definitely a waiting game. Everyone associates Vonage with the VOIP residential business which nobody wants to touch with a ten foot pole. Business Services has projected revenue of $729 million for 2019 and is growing at 23% a year and is due to accelerate due to the fact that Nexmo growing at ~40%. RNG by comparison grows at 28% and has 2019 revenue at $854 million. Yet RNG carries close to a 10B market cap. Even if the rest of of VG's business worth $0, the Business Services segment conservatively warrants at least a $6 billion market cap.
  • A
    AndreC
    CleverTap Partners with Nexmo, the Vonage API Platform, Empowers Marketers to Communicate with their Customers at Scale
    PR Newswire PR Newswire•March 6, 2019
    Mobile marketers can now leverage various channels of customer communications, such as SMS, social messaging apps and more, to craft engaging customer experiences that drive reliable long-term user retention and customer satisfaction with reliability and dependability

    SAN FRANCISCO, March 6, 2019 /PRNewswire/ -- The leading mobile marketing automation platform, CleverTap, today announced it has chosen, Vonage (VG), a business cloud communications leader, to enable additional user engagement channels directly from CleverTap's mobile automation platform via Nexmo, the Vonage API Platform. With this partnership, clients can easily build personalized omnichannel communications experiences throughout the entire customer life cycle at scale, creating valuable customer relationships and enhanced engagement.

    CleverTap is a powerful mobile marketing solution that helps marketers create differentiated omnichannel customer engagement strategies that drive exponential growth. Every day, thousands of brands build valuable customer relationships using CleverTap’s intelligent mobile marketing platform, which provides actionable, real-time insights to help create amazing customer experiences. (PRNewsfoto/CleverTap)
    CleverTap is a powerful mobile marketing solution that helps marketers create differentiated omnichannel customer engagement strategies that drive exponential growth. Every day, thousands of brands build valuable customer relationships using CleverTap’s intelligent mobile marketing platform, which provides actionable, real-time insights to help create amazing customer experiences. (PRNewsfoto/CleverTap)
    More
    Consumers today interact with brands through multiple touchpoints. 90% of consumers start a task on one device and finish it on another.* As consumer behavior changes, marketers need to adapt and evolve their engagement strategies to ensure a seamless customer journey. To deliver a holistic customer experience, marketers need to eliminate data silos, orchestrate consumer journeys across channels, and engage with the customer through the most relevant channel based on preference.

    "CleverTap provides some of the world's largest companies with the best-of-breed mobile marketing solutions to help them create a seamless customer experience," said Sunil Thomas, co-founder and CEO of CleverTap. "Nexmo's proven expertise in the cloud communications space, combined with its ability to swiftly leverage the latest technological advances, makes Nexmo a key partner for us. CleverTap customers can focus on building differentiated engagement strategies that win without having to worry about operational issues such as security, deliverability, and reliability."

    "Vonage's partnership with CleverTap empowers customers to engage with their users through the right channels with the right message at scale and provides a superior experience that drives long-term user retention and revenues," said Omar Javaid, Vonage Chief Product Officer. "The ability to auto-segment users in real-time based on their propensity to respond positively to a specific message on a favorable channel is what makes this partnership unique."
  • J
    Jeffrey
    Not sure I have ever seen a stock that was not nearly overvalued, beat and raise and get multiple price upgrades from the street, precede to top more than 10% in the following 5 days of trading. It literally makes no sense. I could see if it was super highly valued and expectations were thru the roof but they have never been for this company which is why it has traded at such a big discount to its peers!
  • A
    AndreC
    J.P. Morgan Says There’s Room for Over 50% Gains in These 2 Stocks
    VG
    +0.82%

    BTRS
    +0.34%
    TipRanks
    Fri, November 12, 2021, 2:21 PM·5 min read
    In this article: VG +0.82% BTRS +0.34%

    Wall Street’s major banking firms build their reputations, in part, on their ability to see the dark future clearly. JPMorgan has a storied name on the Street, and the banking giant’s Asset Management team has recently been casting its collective eye forward.

    "We are increasingly convinced that the pandemic will leave behind few economic scars, however we expect the policy interventions at the height of the crisis will have a long-lasting impact on markets... Our overall message is optimistic," said John Bilton, head of global multi-asset strategy.

    Keeping that in mind, we’re taking a look at two stocks recommended by some of JPMorgan's top analysts. These are analysts who stand tall among their peers, ranking in the top 10% of Wall Street pros covered by TipRanks. Impressively, the firm's analysts believe each ticker could climb over 50% higher in the year ahead. Let's take a closer look.

    Fri, November 12, 2021, 2:21 PM·5 min read
    In this article:

    VG
    +0.82%
    The second JPM pick we’ll look at is Vonage, a tech company in the telecom industry. Vonage has put together a package combining high tech know-how with telecom service, and offers its customers VOIP and cloud communications for contact center applications and communications APIs.

    Vonage is working to change the way people think about using communications technology. The company noted the shift toward remote work and virtual connections during the pandemic – and especially how that increased the value of networked remote systems and internet communications. Vonage’s products include platforms to bundle these services together, along with legacy telecom systems. These products are flexible and scalable, designed to meet the needs of each customer.

    The approach is working for Vonage, which has shown sequential gains in every quarter of this year, along with year-over-year gains. The 3Q21 report gave $358.3 million at the top line, and for the 9 months ending Sept 30,

    BTRS
    +0.34%

    We’ll start with BTRS Holdings, or Billtrust, a leader in the payment processing niche. BTRS serves business customers in the US, with a B2B accounts receivable automation software platform. This holding company’s subsidiaries provide solutions for cloud-based software and integrated payment processing, including online ordering, invoicing, remittance capture, and accounts receivable. The company boasts over 40 verticals covering a range of industries, and a 98% customer retention rate.

    Just last month, BTRS made a move to expand the value of its platform, through its acquisition of Belgium’s iController, a B2B collections software provider. The acquisition cost BTRS $58 million, which was paid for from cash on hand. iController will become a BTRS subsidiary, and continue operating in Belgium and the Netherlands – expanding BTRS’ footprint in Western Europe.

    This move put some of BTRS’ cash holdings to sound use. The company finished Q3 this year with over $265 million in liquid assets, before the acquisition. BTRS also reported revenues of $41.4 million in Q3, up an 8% year-over-year. The gain was driven mainly be a solid performance in software and payments; that segment saw revenue increase by 21.5% yoy, to reach $26 million.

    Even with that, however, the stock dropped sharply this year, losing 45% of its value. Yet, JPMorgan's 5-star analyst Tien-tsin Huang sees the current low share price as a chance to buy in.

    “Broad-based momentum across the business drove net revenue mildly ahead of expectations. Management suggested greater upside in the key Software/Payments segment," Huang noted. "We think relative valuation is attractive... Stock is trading at a low enough discount now that compounding steady high-teens plus gross profit growth should be good enough for the stock to compound higher as sentiment improves from stable to improving growth.

    To this end, Huang gives BTRS an Overweight (i.e. Buy) rating, with a $15 price target predicting 72% share growth in the year ahead. (To watch Huang’s track record, click here)

    Overall, it’s clear from the Strong Buy consensus that Wall Street agrees with the bullish outlook here. The consensus view is based on a unanimous 5 recent reviews. The share price stands at $8.72 and the average price target of $14.20 implies ~63% upside potential.
    BTRS Holdings (BTRS)

    We’ll start with BTRS Holdings, or Billtrust, a leader in the payment processing niche. BTRS serves business customers in the US, with a B2B accounts receivable automation software platform. This holding company’s subsidiaries provide solutions for cloud-based software and integrated payment processing, including online ordering, invoicing, remittance capture, and accounts receivable. The company boasts over 40 verticals covering a range of industries, and a 98% customer retention rate.
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