Why Did My Stock Just Die?

Most of these traditional schools are now offering online and continuing education courses, often in remote parts of the globe, that use precisely the same business models that outfits like [the University of] Phoenix are using. Universities finance their traditional programs out of these for-profit enterprises. These schools have a huge leg up on the for-profit colleges: zero taxes on endowment gains; a reputable name/accreditation; government support in the form of subsidies, grants, etc. In the meantime, the for-profit schools only have tons of innovation showing that for-profit schools are the equivalent of quicksand for students.

ReachLocal disappointed the market, missing profit and revenue projections and saying the immediate future didn't look all that promising either. I should point out that similarly situated Local.com did surprise to the upside, however that could just be the exception that proves the rule.

Disconnecting from growthA dismal forecast as well had investors hanging up on VoIP (Voice over Internet Protocol) provider Vonage, though the company showed third-quarter improvements. It earned $16 million, or $0.07 per share, compared with a loss of $55.4 million, or $0.26 a share, in the year-ago period. And absent one-time charges it would have made $0.10 a stub, however the market focused on its statement that the 9,000 customer defections it experienced this quarter will probably continue at the same pace until the end of then and there year.

The results of 8x8

Compare that with the results of 8x8 , which recorded a 14% increase in earnings last month and saw its customer churn rates decline from last year. Clearly, it focuses on business clients, so its clientele is different in nature from those Vonage is pursuing, however that makes it a more interesting investment too.

CAPS member thecashmen thinks consumers would just be better off using Magic Jack since it costs less than Vonage however provides in essence the same service. That view to all appearances coincides with much of the investment community's thinking, since just 30% of those rating the VoIP specialist think it will beat the market indexes.