Pandora Slips To $13.26. Top Analyst Says Sell, Predicts Fall To $5.50

image from I'm not ready to give up on Pandora yet, but many investors and at least one top stock analyst certainly are.  After rising into the low $20's on the day of its IPO, the stock fell back to around $18 at the the end of Wednesday.  But the decline escalated on Thursday closing at $13.26.  Some of the drop came after BTIG Research analyst Rich Greenfield began his tracking of Pandora with a Sell rating and a target price of $5.50.

Pandora's problems stem from its large fixed streaming costs, which just get higher the more popular it becomes. "Pandora is a great consumer music service, but its business model does not scale in the same way as other successful Internet businesses," wrote Greenfield

Image via Yahoo Finance, where you can also track Pandora's current price.

MORE: "5 Reasons I'd Buy Today's Pandora IPO".

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  1. I would hope you’re not given up on it! It was only 2 days ago you gave your readers 5 reasons why to buy! I guess the reason about revenues doesn’t apply to most these businesses.

  2. I don’t think it’s a good buy. There’s too many things going on in this space and it’s cloudy. Yeah Pandora is popular but only because it’s easy to use. Spotify is going to challenge it. I’d say these investors know what they are doing.
    I’m actually glad to see this. With all the Linked-In IPO hype I was beginning to think we were looking at Bubble 2.0.

  3. Don’t sleep on it. Much like Twitter, when they get the right recipe for profit, their influence will be a serious force. This is one to hold on to for the long-term possibility vs. the short-term. The future of radio is already being heavily influenced by the online market Pandora is already leaps and bounds ahead when it comes to listener retention.
    Just my take on it.

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