Pandora Pop Is Gone Day After IPO

http://techcrunch.com/2011/06/16/pandora-pop-is-gone-day-after-ipo/?utm_source=feedburner&utm_medium=feed&utm_campaign=Feed%3A+Techcrunch+%28TechCrunch%29

by davidedicillo • 15 years ago

30 28 15 years ago

techcrunch.com

simonsarris3• 15 years ago

I don't think it is too surprising. They are bleeding cash and will someday have seriously stiff competition from at least Google, Amazon and Apple.

I do hope they do well; I really enjoy Pandora. But it has been an uphill battle for them to get this far, mostly because content owners are regressive-minded. And the battle will only get a lot more difficult as competition arises in the near future.

jonknee2• 15 years ago

Pandora isn't bleeding cash.

makmanalp• 15 years ago

They're profitable?

simonsarris3• 15 years ago

"Pandora is by far the leading Internet radio service, with 80 million registered users, but it has yet to earn a profit and nearly half of its revenues go toward paying royalties to be able to stream music, fees that are set to escalate over the next four years. It had losses of $328,000 in the nine months ending Oct. 31."

From an article dating Feb 14th, this year:

http://www.variety.com/article/VR1118032185?refCatId=1009

And from the Reuters story from yesterday:

"Chief Executive Joseph Kennedy said there was no timeline to turn a profit, though a larger audience should eventually attract advertising dollars."

wunderfool• 15 years ago

these lackluster IPOs can truly be put on the backs of their financial partners

timing matters. the investment banks are taking companies public in a new downturn in the markets that could last a while. they should have gone public a year ago, when markets still had plenty of easy upwards momentum

what happened to pandora? greece. sorry, macro still matters. people get scared by big stories, they put their money in treasuries

cagenut• 15 years ago

This is a good thing

One of the lessons people seem to have forgotten from the first bubble is that the opening day "pop" is a manufactured scam by the ibanks so that their insider/selected clients can flip some shares for quick buck. You don't want a pop, a pop is bad.

An IPO'd stock actually trading at its priced value a day later is a sign that the banking advisers actually did their job right in pricing it.

dhh3• 15 years ago

Pandora is still massively overpriced at $16/share. I reckon a price at $2/share would still be a significant gamble: http://shortlogic.tumblr.com/post/6586713689/pandora-should-...

sabat4• 15 years ago

That post is skewed and narrow-minded. Pandora is in places most people don't realize, and has growth opportunities the poster is not taking into account.

Remember, there's a big difference between a lifestyle business and a startup. A startup knows how to grow and do so creatively. A lifestyle business has no such inclination, and those involved with such efforts tend to think about other businesses in a narrow manner.

dhh3• 15 years ago

Hahaha. That's your argument? "They're in many places and you wouldn't understand why they're so valuable if you have a <scoff> 'lifestyle' business".

How about dishing concrete examples of all these places they're in that's going to make them as astonishingly profitable as they need to be to justify a $2.5B valuation?

jordanb2• 15 years ago

So to restate your argument, Pandora is a company capable of carrying out an undertaking of great advantage, but nobody knows what it is.

Does that sound fair?

patrickgzill• 15 years ago

I find if I run Pandora in a browser that has e.g. AdBlockPlus on it, I don't get ads. Given that, how can they possiby be making any money on me?

ChuckMcM• 15 years ago

I get ads in the audio stream on my phone.

lutorm2• 15 years ago

From the title, I thought the shareholders had demanded they stop playing pop music...

lutorm2• 15 years ago

(That was not a joke. At least to me, "pop" in connection to a music company does not make me think of stock prices.)

dannylipsitz• 15 years ago

No pop does not = bad IPO. Pandora raised more capital than intended as the final IPO price of $16/share was about double that of the initial target IPO price range of $7 to $9. The lack of stock price volatility in the market is often a good thing as it allows the company a clearer picture of its capital base.

jordanb2• 15 years ago

Pandora didn't get any of that "pop" capital. It went to investors who were able to sell on the first day.

iamelgringo• 15 years ago

Pandora replaces radio, and their music genome is pretty amazing and extremely hard to reproduce technology.

Look at related stocks like Clear Channel, Sirrius/XM, etc.. http://www.google.com/finance/related?q=PINK:CCMO

Pandora Pop Is Gone Day After IPO

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