The VoIP stock quandary


The week that was proved to be a big one for anything VoIP. Especially the stocks which leaped higher mostly driven by the news of Nortel-Verizon deal, an indicator of the growing popularity of the voice-over-internet technologies. The Wall Street Journal’s Erin Schulte in her piece, “Though VoIP rally is mature, analysts still see opportunity,” echoes the sentiments of some analysts. (Well we know how on the nose these so called analysts are anyway)

Casey Ryan at Wells Fargo Securities in San Francisco magnanimously predicts a 100 percent jump in overall VOIP sales. Okay if we go from $400 million to $800 million, that still does not justify the massive jump in the VoIP stocks. His pick: Polycom. Dude why not go follow some other industry such as online pet food sales. Timm Bechter, an analyst at Legg Mason likes Sonus Networks, while others back 8X8 and Avaya.

Meanwhile most opportunistic politcos are jumping on to the bandwagon. Sen. John Sununu is working on a VoIP Bill to be Introduced in 2004, but more thoughtful Beltway view on this technology is still missing.

Comments are closed.