Do Investors Really Understand Pandora and Digital Music?
Date: Monday, June 27, 2011 @ 21:23:24 UTC

One reason for the wide swings in Pandora's stock price is due to wide differences in enthusiasm about the company. Investors with the greatest belief in the company purchased at $24 per share. Others waited until the price dropped below the $16 offering price and bought as low as $12.16. Even those who bought Monday at $16.50 are showing a great deal of belief in the company by valuing it at over $2.6 billion. But maybe Pandora's stock swings really reflect investor ignorance of the digital music space - the Internet radio space, more specifically. After all, absolutely nothing about the company's financial situation or the fundamentals behind its value has changed in the last week. Complete Article

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