Pandora Stock Comes Back Down to Earth
Pandora Stock Comes Back Down to Earth
After a turbulent first day of trading, shares of Pandora Media Inc. fell before their initial offering price Thursday due to concerns that the company won't be able to sustain sufficient growth to warrant the market value gained in its first day of trading. The online radio company launched its IPO Wednesday, selling shares for $16.00 each. The shares quickly climbed more than 50 percent, reaching a price of $24.25 just 36 minutes into their debut session, before spending the rest of the day declining to close at $17.45.
The shares then plunged in overnight trading as speculation over the company's ability to grow scared investors. As of 12:15 PM ET, Pandora stock was at $16.06, after having been down as low as $15.50 earlier in the session. The company's successful debut on Wednesday gave it a market capitalization of $2.8 billion, a figure that is about 20 times its 2010 revenue. In comparison, Sirius XM Radio, a subscription-based satellite radio provider, has a market cap about 2.7 times its 2010 revenue. And unlike Pandora, which has yet to record a profit, Sirius is making money.
Pandora's opening day surge was partly due to the recent fervor over Internet companies fueled by the wildly successful IPO of LinkedIn less than a month ago, which was also riding the wave of increased interest in Internet shares. A dozen deifferent Web companies have launched IPOs so far this year, the most in any full year since 2000, at the height of the Internet boom.
After a turbulent first day of trading, shares of Pandora Media Inc. fell before their initial offering price Thursday due to concerns that the company won't be able to sustain sufficient growth to warrant the market value gained in its first day of trading. The online radio company launched its IPO Wednesday, selling shares for $16.00 each. The shares quickly climbed more than 50 percent, reaching a price of $24.25 just 36 minutes into their debut session, before spending the rest of the day declining to close at $17.45.
The shares then plunged in overnight trading as speculation over the company's ability to grow scared investors. As of 12:15 PM ET, Pandora stock was at $16.06, after having been down as low as $15.50 earlier in the session. The company's successful debut on Wednesday gave it a market capitalization of $2.8 billion, a figure that is about 20 times its 2010 revenue. In comparison, Sirius XM Radio, a subscription-based satellite radio provider, has a market cap about 2.7 times its 2010 revenue. And unlike Pandora, which has yet to record a profit, Sirius is making money.
Pandora's opening day surge was partly due to the recent fervor over Internet companies fueled by the wildly successful IPO of LinkedIn less than a month ago, which was also riding the wave of increased interest in Internet shares. A dozen deifferent Web companies have launched IPOs so far this year, the most in any full year since 2000, at the height of the Internet boom.
Comments
Top Stories
Latest DT's
-
1 month ago by Geno -
1 month ago by dallaseste
-
2 months ago by Geno
-
2 months ago by Geno
-
2 months ago by Geno
-
2 months ago by Geno
-
2 months ago by Geno
-
2 months ago by Geno
-
2 months ago by dallaseste
Top Authors
Subscribe
Games
Alias
3 Foot Ninja 2
ALIAS 2
Air Dodge
Battle Tanks
Bomber Bob
Cable Capers
Gem Mania
Hacker
Hostile Skies
Mission Mars
Bowling
Samurai Warrior
The Pharoh's Tomb
Monkey Lander
Muay Thai
Action
Donkey Kong Banana Barrage
501 Dart Challenge
Rooftop Skater
Zelda
Donkey Kong
Xtreme Pinball
Tetris
Connect 4
Battleships
Frogger
Penguin Push
Online Video Poker
Spank The Monkey
Mob Pay Back
Dealer
Yeti Sports Seal Bounce
Hold Your Drink Steady
Solitaire
Canyon Glider
3D Sudoku
Metal Slug Rampage
Street Fighter II
Flashman
Disc Golf
Table Tennis
Ninja Air Combat
Celebrity Hitman Terrorist Alert
Spider Solitaire
Tubin
Presidential Knockout
Global Player
Ma Balls
Baseball
Beckham Fit
0 Comments
Click here to sign up now.