Pandora Stock Falls Wednesday On Wider Loss Forecast
Pandora stock, battered by profitability concerns and rumored competition from iTunes, fell another 17% to $7.84 in late morning trading Wednesday, after the company forecast widening losses ahead. Revenue for Pandora's quarter ending October 31 was actually up 60% over the previous year's Q3 to $120 million. Advertising grew 61% to $106.3 million, with subscriptions and other revenue up 52% to $13.7 million. But Pandora's future projections gave investors the jitters.
In yesterday's report, Pandora projected a loss next quarter of 6-9 cents per share on revenue of $120-$123 million. The company blamed sluggish ad sales caused by a stalled economy.
Analysts had previously predicted that Pandora would turn a profit early next year of 2 cents per share on $130.3 million quarterly revenue.