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+--- Thread: Pandora IPO suffers mightily today (/showthread.php?tid=118787)
Pandora IPO suffers mightily today - hal - 06-16-2011
http://www.chicagotribune.com/business/breaking/chi-pandora-shares-fall-briefly-dip-below-ipo-price-20110616,0,6820807.story
Pandora Media shares plunged as much as 25 percent Thursday, sending it below its IPO price and burning investors who had once clamored for a piece of what was touted as a red-hot sale.
During its second day of trade, doubts mounted about whether the online radio company would ever turn a profit and compete with its Internet rivals, causing investors to bail out of the stock from the earliest hours of the session.
Shares closed at $13.26, down $4.16 or 24 percent, on the New York Stock Exchange. This is below the $16 per share IPO price, meaning investors who bought the stock as it went public have lost money.
...and that assuming they got in at the IPO price - trading went as high as $26 on the IPO day.
Re: Pandora IPO suffers mightily today - C(-)ris - 06-16-2011
Are people stupid? 2 days after it has an IPO people figure out it might not turn a profit? Isn't that something you are supposed to research before you invest?
Re: Pandora IPO suffers mightily today - M A V I C - 06-16-2011
C(-)ris wrote:
Are people stupid? 2 days after it has an IPO people figure out it might not turn a profit? Isn't that something you are supposed to research before you invest?
Pretty much. I don't think they've proven their business can turn a profit with increased scale... unlike companies like Amazon. They turned a loss for a long time but it was pretty clear they would turn a profit someday.
Re: Pandora IPO suffers mightily today - Black - 06-16-2011
C(-)ris wrote:
Are people stupid? 2 days after it has an IPO people figure out it might not turn a profit? Isn't that something you are supposed to research before you invest?
You missed the part where "doubt mounted" in the course of the morning or whatever. 2 days ago nobody could have predicted that there would be a doubt-mounting like the one we saw today.
Re: Pandora IPO suffers mightily today - Numo - 06-16-2011
But I did research it - my brother-in-law said if I got in at the ground floor, I'd make a killing!:dunno:
Re: Pandora IPO suffers mightily today - Seacrest - 06-16-2011
Glad I didn't liquidate my theglobe.com shares to buy in.
I'm still just as rich today as I was yesterday.
Re: Pandora IPO suffers mightily today - SteveO - 06-17-2011
Terrible time for an IPO. Summer doldrums. "Sell in May and go away" isn't a popular saying for nuthin'.
Re: Pandora IPO suffers mightily today - M A V I C - 06-17-2011
Black wrote:
[quote=C(-)ris]
Are people stupid? 2 days after it has an IPO people figure out it might not turn a profit? Isn't that something you are supposed to research before you invest?
You missed the part where "doubt mounted" in the course of the morning or whatever. 2 days ago nobody could have predicted that there would be a doubt-mounting like the one we saw today.
There was major doubt before they IPO'd. eg http://www.udemy.com/blog/2011/06/09/is-there-a-bubble-2-0/
Ammo wrote:
But I did research it - my brother-in-law said if I got in at the ground floor, I'd make a killing!:dunno:
An IPO is well past ground floor. And IPO is the first shot of the ground floor and many levels up to recoup their investments.
SteveO wrote:
Terrible time for an IPO. Summer doldrums. "Sell in May and go away" isn't a popular saying for nuthin'.
Not really. Tech sector is booming and is a very profitable area right now. Locally many tech jobs are still going unfilled.
Re: Pandora IPO suffers mightily today - 3d - 06-17-2011
From the article.
"The bigger Pandora's audience gets, the more it must pay record labels in licensing fees, hurting the mostly free radio service's chances of becoming profitable."
Wait. Wa-What?! LOL
I have Pandora on for it's kiddie music. I refuse to pay money for "Five Little Monkeys Jumping on the Bed" and "Head Shoulders Knees and Toes". The ads are really annoying though. If i have to listen to another commercial for Drop Dead Diva on the Lifetime channel I'm gonna jump out the window.
Re: Pandora IPO suffers mightily today - Joey Cupcakes - 06-17-2011
3d wrote:
I refuse to pay money for "Five Little Monkeys Jumping on the Bed" and "Head Shoulders Knees and Toes". The ads are really annoying though. If i have to listen to another commercial for Drop Dead Diva on the Lifetime channel I'm gonna jump out the window.
So the artists who take the time to write and the money to record the songs that keep your toddler entertained are not worthy of compensation?