Wall Street Tries Out iTunes Radio, Sends Pandora Stock Soaring
Apple's iTunes Radio launched yesterday. For many analysts it was to be the ultimate Pandora killer. After all, at launch, iTunes Radio came instantly installed on millions of phones, tablets and computers and embedded within the iTunes eco-system used by tens of millions to purchase and play music. But after trying out Apple's new streaming music service, they sent Pandora's shooting upward to an all-time high.
Shares of Pandora climbed on Thursday $1.71, or 6.7, to $27.35, Shares have nearly tripled this year and are at the highest since its IPO in June 2011. As of mid-afternoon of Friday, Pandora stock was trading at $26.52.
In repsonse, Pandora also increased the number of shares it is offering to the public in a recently announced $450 million sale, and raised the offer price to $25 from $23.99.
Riiiight… because Apple is going to abandon the whole music thing and not continue improving it. iTunes was a bad idea that will probably not take off either.
Pandora had better enjoy this short time it has left at the top.