Pandora is one of the Web's most popular and beloved music services, and smart investors shouldn't go anywhere near the company's stock.
Shares of the profitless radio service began trading today on the New York Stock Exchange as part of an initial public offering, the latest technology play with a questionable business model to test the public equity markets.
In early morning trading, Pandora, which trades under the ticker symbol P, was up 28 percent to $20.37 a share but then began to level off. Investors began pulling back not long after and the stock closed the day at $17.42, up 8 percent. According to Bloomberg, Pandora sold 14.7 million shares yesterday at a price of $16 a share, giving the company a valuation of $2.6 billion. Pandora isn't worth $2 billion and here's why: … Read more