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# Analyst Says Don’t Touch Pandora IPO
- URL: https://www.hypebot.com/analyst-says-dont-touch-pandora-ipo/
- Published: 2011-06-10T14:54:29.000Z
- Updated: 2011-06-10T14:54:29.000Z
- Description: Just as Pandora raised its IPO price from $10 to $12, one major analyst is telling investors to pass on the stock offering. IPO prices are generally set based on. Continue reading [https://www.hypebot.com/hypebot/2011/06/analyst-says-dont-touch-pandora-ipo.html]
- Author: Bruce Houghton
- Tags: Streaming, #wp, #wp-post, #Import 2026-01-21 10:55

[![image from www.google.com](http://hypebot.typepad.com/.a/6a00d83451b36c69e2014e890c4d3c970d-150wi "image from www.google.com")](http://hypebot.typepad.com/.a/6a00d83451b36c69e2014e890c4d3c970d-popup?ref=hypebot.com)

Just as **Pandora** raised its **IPO** price from **$10 to $12**, one major analyst is telling investors to pass on the stock offering. IPO prices are generally set based on advance investor interest and the [newest initial offering](https://www.hypebot.com/am-news-facebook-tests-happening-now-pandora-ipo-bump-sony-hack-arrests-pledgemusic-more/) would value Pandora at **$1.9 billion**. But analyst **Rich Greenfield of BTIG** is encouraging investors to **stay way:**

> “As consumers we love Pandora. It is free, incredibly easy-to-use, works across a growing array of platforms in/out-of-home, and has a de minimis amount of advertising compared to terrestrial radio…Investing in Pandora is a whole different story. While Pandora is creating a large active user base, its reach/frequency continues to pale in comparison to terrestrial radio, as does its profitability….**We recommend investors do not participate in the Pandora IPO**.”

Greenfield believes that Pandora won’t be able to generate even a modest positive Ebitda until fiscal 2014.

About of Pandora’s revenue for its last fiscal year went to royalty payments. As the Wall Street Journal [reminded readers](http://blogs.wsj.com/deals/2011/06/10/pandora-ipo-leave-this-one-alone-analyst-says/?ref=hypebot.com) today, "The more people listen to Pandora and the more money Pandora makes, the more those costs will grow, putting pressure on the company to sell a boat load more ads than it does now."