Pandora Stock Opens Strong, Then Falls Back
Pandora, which pre-traded at $16 Tuesday night soared early Wednesday during the official IPO and looked like it was head to $26. But by the close, Pandora had settled back to $17.42 That's a modest 8.9% first day gain over pre-trading and below the $20 targeted. This morning pre-market trading was lower, dropping 3.85% to $16.80.
"Investors had their initial emotional flush with the stock," said David Menlow, head of IPOfinancial.com in Millburn, N.J. told the LA Times. "Then they got a strong dose of reality." Concerns centered around Pandora's high music licensing payment which gobble up 50%+ of the Pandora's revenue. In the long run, I remain a believer as I wite yesterday in "5 Reasons I'd Buy Today's Pandora IPO".
You can track Pandora's current price here.