No Sugar for Go Daddy

If you liked the Vonage (VG Quote) IPO, chances are you'll really enjoy Go Daddy's impending debut.

Similarities abound between Vonage, an Internet phone provider whose $531 million initial public offering turned into a trainwreck, and domain registration company Go Daddy. Like big Web advertiser Vonage, Go Daddy has made a splash with its marketing efforts, notably its racy Super Bowl television commercials. Neither company is profitable and both are jacking up spending to boost their brands.

"They are pioneers and familiar names in spaces that are very competitive and getting increasingly crowded," says Joe Lazslo, an analyst with JupiterResearch, in an interview.

But judging by Vonage's rough reception since its May 24 IPO -- the stock is down 28% -- pioneer status may not count for much nowadays in the stock market. That could mean Go Daddy will have a tough time when its deal comes out. ...