Pandora IPO…I don’t get it


Pandora, the music service that lets you customize a “channel” on your computing device has just IPO’ed to much success.

Investors gobbled up shares in the company (this after some potentially shady stuff on Pandora’s part) and the value of the stock took a nice climb.

But what really are the investors buying right now?

It’s important to know that Pandora has yet to make a profit.  That’s right it’s bleeding money on a pretty good scale.

Granted they have lots of subscribers and users.  That’s good.  But where are they making money, or where will they make money?

While I’m all for speculation on future performance of a company, I’d have to think and look long and hard before I invested in a company positioned in such a way.

I’m wondering if they hype over the company didn’t out weigh a bit of common sense.  Maybe?  Anyone?

Time will tell, but I hope this isn’t a bubble about to burst.

After all, I like Pandora and use it a lot.  I’d hate to see it fold in on itself.

Advertisements
%d bloggers like this: