IPO Mania — Pandora Valued $5 Billion

The shares are up 40-50% compared to the already extremely high offering price.
NEW YORK (AP) -- The shares of popular but unprofitable Internet radio service Pandora Media Inc. soared more than 50 percent in its market debut Wednesday.

Its shares opened at $20 a share and rose as high as $26 in early trading on Wednesday, up from its offering price of $16. At its high, that valued Pandora at $4.2 billion.
The company is:

  • losing money
  • many years old, yet never managed to get traction
  • extremely richly valued: $5 billion
  • trading with single letter ticker "P" — another mania-time sign

No comments: