
Pandora Pop Is Gone Day After IPO - davidedicillo
http://techcrunch.com/2011/06/16/pandora-pop-is-gone-day-after-ipo/?utm_source=feedburner&utm_medium=feed&utm_campaign=Feed%3A+Techcrunch+%28TechCrunch%29
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cagenut
This is a _good thing_

One of the lessons people seem to have forgotten from the first bubble is that
the opening day "pop" is a manufactured scam by the ibanks so that their
insider/selected clients can flip some shares for quick buck. You don't want a
pop, a pop is _bad_.

An IPO'd stock actually trading at its priced value a day later is a sign that
the banking advisers actually did their job right in pricing it.

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dhh
Pandora is still massively overpriced at $16/share. I reckon a price at
$2/share would still be a significant gamble:
[http://shortlogic.tumblr.com/post/6586713689/pandora-
should-...](http://shortlogic.tumblr.com/post/6586713689/pandora-should-be-
trading-at-2-share-tops)

~~~
sabat
That post is skewed and narrow-minded. Pandora is in places most people don't
realize, and has growth opportunities the poster is not taking into account.

Remember, there's a big difference between a lifestyle business and a startup.
A startup knows how to grow and do so creatively. A lifestyle business has no
such inclination, and those involved with such efforts tend to think about
other businesses in a narrow manner.

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dhh
Hahaha. That's your argument? "They're in many places and you wouldn't
understand why they're so valuable if you have a <scoff> 'lifestyle'
business".

How about dishing concrete examples of all these places they're in that's
going to make them as astonishingly profitable as they need to be to justify a
$2.5B valuation?

~~~
mattlong
How about not assuming a company that just IPOed is at the end of its road but
instead will continue innovating and finding new revenue streams? They did
just raise $200MM after all.

~~~
jcol
I'd be more impressed if they could support themselves after 7 years and
didn't need investments and an IPO to stay afloat.

~~~
sabat
Actually they've been previously profitable but keep putting money into
expanding the business.

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simonsarris
I don't think it is too surprising. They are bleeding cash and will someday
have seriously stiff competition from at least Google, Amazon and Apple.

I do hope they do well; I really enjoy Pandora. But it has been an uphill
battle for them to get this far, mostly because content owners are regressive-
minded. And the battle will only get a lot more difficult as competition
arises in the near future.

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jonknee
Pandora isn't bleeding cash.

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simonsarris
"Pandora is by far the leading Internet radio service, with 80 million
registered users, but it has yet to earn a profit and nearly half of its
revenues go toward paying royalties to be able to stream music, fees that are
set to escalate over the next four years. It had losses of $328,000 in the
nine months ending Oct. 31."

From an article dating Feb 14th, this year:

<http://www.variety.com/article/VR1118032185?refCatId=1009>

And from the Reuters story from yesterday:

"Chief Executive Joseph Kennedy said there was no timeline to turn a profit,
though a larger audience should eventually attract advertising dollars."

~~~
jonknee
If you consider losing $328,000 in nine months while posting $90M in revenue
to be "bleeding cash", I suppose you're right.

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dannylipsitz
No pop does not = bad IPO. Pandora raised more capital than intended as the
final IPO price of $16/share was about double that of the initial target IPO
price range of $7 to $9. The lack of stock price volatility in the market is
often a good thing as it allows the company a clearer picture of its capital
base.

~~~
jordanb
Pandora didn't get any of that "pop" capital. It went to investors who were
able to sell on the first day.

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iamelgringo
Pandora replaces radio, and their music genome is pretty amazing and extremely
hard to reproduce technology.

Look at related stocks like Clear Channel, Sirrius/XM, etc..
<http://www.google.com/finance/related?q=PINK:CCMO>

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lutorm
From the title, I thought the shareholders had demanded they stop playing pop
music...

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lutorm
(That was not a joke. At least to me, "pop" in connection to a music company
does _not_ make me think of stock prices.)

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wunderfool
these lackluster IPOs can truly be put on the backs of their financial
partners

timing matters. the investment banks are taking companies public in a new
downturn in the markets that could last a while. they should have gone public
a year ago, when markets still had plenty of easy upwards momentum

what happened to pandora? greece. sorry, macro still matters. people get
scared by big stories, they put their money in treasuries

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patrickgzill
I find if I run Pandora in a browser that has e.g. AdBlockPlus on it, I don't
get ads. Given that, how can they possiby be making any money on me?

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ChuckMcM
I get ads in the audio stream on my phone.

