Pandora’s crappy day: When day two of an IPO totally bombs
- $16 the amount per share Pandora set its initial public offering for
- $26 the price the internet radio company reached at its peak yesterday
- $13 the price the stock closed at today; not looking so hot source
» This isn’t a good sign: Generally when a stock has a steep decline immediately after its IPO, it means that the pricing is totally off. In the case of Pandora, the company initially planned to enter the stock market at $7 to $9 per share, but with the current investor fervor over internet companies, the IPO price doubled. Meanwhile, other recently-added tech stocks — LinkedIn and Yandex — have fallen from their peaks, but remain above their IPO prices. In the case of LinkedIn, they’re a solid 52 percent above their IPO price.
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