After popping 60 percent yesterday in the first day of trading, shares of streaming music company Pandora are back to around $13 to $17 per share in morning trading. Pandora was priced at $16 per share on Tuesday evening, but opened at $20 and closes at $17.42 yesterday afternoon. Today, Pandora opened at $16.99 and dropped as low as $12.99 in trading. Pandora’s stock closed at $13.26, a 17 percent from Pandora’s pricing of $16 per share.
For basis of comparison, LinkedIn’s IPO popped by 100 percent on its first day of trading, and has also settled below its opening trade of $83. LinkedIn is currently trading at $72 per share.
Some have said that Pandora’s IPO was priced correctly, as opposed to LinkedIn, which was underpriced and thus witnessed a significant pop in trading. But dropping below the initial pricing amount is probably not a good sign.
For background on Pandora’s road to the IPO, read ‘Pandora Puts The “P” In IPO — Our Talk With Them On The Big Day.’
Pandora Radio is an internet radio service, recommendation service, and the custodian of the Music Genome Project. Users enter a song or artist that they enjoy, and the service responds by playing selections that are musically similar. Users provide feedback on approval or disapproval of individual songs, which Pandora takes into account for future selections. While listening, users are offered the ability to buy the songs or albums at various online retailers. As part of the Music Genome Project, over...