Pandora Radio, the enormously popular internet music streaming service, had an IPO two days ago. Intense demand for the stock on Wednesday drove the price of shares as high as $26, but by the time the market closed yesterday; it was down to $16 per share.
But even at that price, some analysts are wondering if the stock is overvalued. They say because the free music service has to pay royalties on every song played, and because the amount they are making on advertising still isn’t covering their costs; the company may never be able to turn a profit.
But I’m a music geek, and a die-hard Pandora fan. I think it’s the little company that could, and I have absolute faith that it will be a solid investment and commercial success. But that’s just me; the one who zigs when the market zags.
So, don’t take my advice on investments, but do take it when I tell you that Pandora is the best free online radio ever, and will absolutely delight you, if you take the time to listen.
Now, all they have to do is convince both advertisers and investors to sing the same tune.