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."
Comments Closed
@LeoJTravis10 Thursday, June 16, 2011
Joe
ouch.
@the_skyscraper Thursday, June 16, 2011
Brent Stiefel
not surprising!
@SoulRebelMusic Thursday, June 16, 2011
Soul Rebel Music
All Hype?
TooMuchMediocreMusic Thursday, June 16, 2011
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.
Goldman Thursday, June 16, 2011
Beware- Pump an Dump
Facebook is next
@Xensei Friday, June 17, 2011
Xensei
Over!
Adam Friday, June 17, 2011
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?
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