Pandora's IPO debacle: Shares plunge through offering price after a day

Pandora's IPO debacle: Shares plunge through offering price after a day

Summary: Pandora's high-profile initial public offering has turned into a nightmare as shares fell through the $16 pricing floor.

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Pandora's high-profile initial public offering has turned into a nightmare as shares fell through the $16 pricing floor.

The online radio company priced its IPO at $16 a share on Tuesday night. From there, Pandora rocketed north of $22. That price turned out to be a sweet spot to short sell Pandora. Shares on Thursday cratered 24 percent and were barely clinging to $13 near market close.

We've noted all the problems with Pandora, but the chart says it all. For Pandora's sake let's hope it doesn't wind up in CBS News' dot-com IPO hall of shame.

Related:

Pandora makes debut: Public venture capital returns

CNET

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Topics: Banking, Legal

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10 comments
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  • For a company whose losses increase as their customer base goes up...

    I am surprised Pandora is doing this well.
    Bruizer
  • RE: Pandora's IPO debacle: Shares plunge through offering price after a day

    Buy XM they have a serious business model and the stock was trading at around 2...
    Hasam1991
  • A fool and their money

    etc...
    goingbust
  • Why is it an "IPO debacle?"

    Why is it an "IPO debacle" when "Shares plunge through offering price after a day?"

    I understand that it is bad for buyers of stock, who might want to sell their shares, whenever the price falls below what they paid. However, the phrase "IPO debacle" seems to imply that it is a debacle for those selling the initial public offering. Usually, it is good to sell shares before they fall in price. Why is it a "debacle" in the case of an IPO?
    AMusnikow
    • RE: Pandora's IPO debacle: Shares plunge through offering price after a day

      @AMusnikow Its a debacle because its a very shaky start.
      vel0city
    • RE: Pandora's IPO debacle: Shares plunge through offering price after a day

      @AMusnikow Shares that fall below the IPO price are called broken. This one broke after a day, which indicates little support from the investment bankers that brought the company public.
      Larry Dignan
    • Whew!

      <ul><i>Why is it an "IPO debacle"</i></ul><p><br>I take it you are one of the venture capital investors in Pandora. If you're not, be assured that they don't think it's a debacle either. They are all breathing a lot easier today. As for the <strike>suck</strike> erm, investors who bought IPO shares, bless their little hearts.
      Robert Hahn
  • I've been saying the same thing for years ...

    that Pandora is all show and [very] little "go." Mostly hype. Glorified music streaming. That's all.
    brian ansorge
    • The need to drop their &quot;free&quot; mindset.

      @brian ansorge

      One of the worst things the Internet has done is make people think that paying for content is "evil" and "wrong".
      Bruizer
  • RE: Pandora's IPO debacle: Shares plunge through offering price after a day

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