Hype:Over! Pandora Dips Way Below Its Offer Price

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.”

7 Responses

  1. TooMuchMediocreMusic

    Ok, so most people on this board are ‘music geeks’… but do you know any ‘normal’ people that use Pandora? I dont. If one stood on a street corner in Topeka and asked passersby if they were a paying subscriber to Pandora, one might be there a while before a ‘why, of course!” was heard.

  2. Adam

    Who want’s to buy stock in a company where $1.90 CPM is taken of the top of every ad buy they get to pay royalties?