Pandora plans $231M share offering

http://www.sec.gov/Archives/edgar/data/1230276/000104746913009097/a2216690zs-3asr.htm

by antr • 13 years ago

30 12 13 years ago

buckbova2• 13 years ago

This is a risky investment as it was.

Poor stock holders are getting screwed by this. If you are holding, sell as soon as you are able.

I'm always amazed when a company can have such a high share price when it hasn't proven it has a profitable business model.

toomuchtodo• 13 years ago

High share prices come from estimated potential. Everyone is speculating on potential.

lutusp4• 13 years ago

I'm always amazed when a company can have such a high share price when it hasn't proven it has a profitable business model.

It's simple probability. You assemble a database of tech companies and their histories -- what happened to them over time, how they were funded, how their stock fared. Then, when you want to evaluate a new company, you compare it to your database, see how other similar companies evolved. You get a statistical sense of the possible outcomes.

Using that data, you invest in companies based on the probability that they will be successful, and the share price is part of the gamble (and it is certainly a gamble). In fact, if you think about it, the fact that the share price is high means other people are doing the same probabilistic calculation and bidding up the price as well.

It's not an accident -- it't a lot of people betting the company will succeed. Obviously by buying the shares, they're also providing the capital that company needs to grow, so it's more than a blind gamble. It's also to some extent a self-fulfilling prophecy.

buckbova2• 13 years ago

It's simple probability.

No it's not.

It's hype, buyout rumors, etc. The stock price will fall hard.

nonchalance• 13 years ago

"Poor stock holders"

To be clear, the stock hit the all-time high last week (https://www.google.com/finance?q=P today's close 23.99 all-time-high 24.29 last thursday). Most stockholders have made quite a bit

YOSPOS• 13 years ago

They're going to need every last dollar they can get once people start using iTunes Radio.

baddox• 13 years ago

What do you see them being able to do, even with a bunch more capital?

Pandora plans $231M share offering

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