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.’