Pandora was hyped-to-the-hilt on Wednesday, but it looks like Wall Street isn’t really ‘buying it’ anymore.
In Thursday morning trading, Pandora started dipping below its offer price of $16, before tanking into the low teens by afternoon. By the bell, ‘P’ had landed at $13.26 after a brutal 90-minute finisher.
Smart investors got in-and-out on Wednesday, if they could, and grabbed a nice gain. Pandora also rustled hundreds of millions in fresh cash, though broader questions surround the longer-term valuation and profitability picture.
Wall Street types suspect a dog, and that includes salty BTIG analyst Richard Greenfield. As the southward progress became obvious, Greenfield stamped a ‘Sell’ onto Pandora, with a one-year price target of $5.50.
Already, the post-IPO jabs are starting. “Is Pandora’s greatest asset its single-letter ticker?” MarketWatch blogger Tom Bemis snarked. “Single-letter companies can still say they are part of a very exclusive club. In Pandora’s case, it remains to be seen how long it can keep up its membership.”