Pandora Stock Offering May Help Identify Tech Bubble

Melanie Gross
Jun 16, 2011
Updated • Dec 10, 2012

It seems that whatever tech excitement that may have catapulted Pandora higher following its initial public offering on Wednesday has fizzled away into boring old economics.

The online music streaming company stock opened at an impressive $20 per share, shooting up as high as $25 soon after trading began before quickly settling back down below open at $17.42. Pandora’s respectable $20 initial offering was much higher than expected in the months following the company’s announcement that it would begin trading on the stock exchange in February. Prices were initially set a paltry $9 per share, but increased last week to $10 to $12 each. The company priced its initial public offering at $16 per share the day before trading began.

As has been the case with other tech stocks, impressive early gains made by Pandora were quickly followed by decline to levels not far from opening prices. By the time of print, only one day after release, Pandora’s stocks were trading well below opening value at around $14.50 per share.

The release of Pandora stock into the market closely follows professional social marketing website LinkedIn’s initial public offering in May. Like Pandora, LinkedIn enjoyed considerable gains in early trading. Their stocks began with at an initial price of $45 per share before opening at a sky-high $86, closing the first day up 80% and wowing investors. Since then, however, prices have cooled considerably, falling to their current levels around $70 each.

Understanding what these numbers mean for the tech industry as a whole is a little more difficult. Rumblings have been growing pretty loud from technology news agencies and financial reporters alike about the possibility of a new tech bubble. The rapid incline of LinkedIn followed by gradual decline might be pointed to as evidence of such a bubble. Of course, others will simply brush such worries aside, labeling them as usual market fluctuations. Yet inflated valuations from Groupon and Twitter, both of which may be in the tens of billions, suggest that things may already be getting out of control.

What is clear, however, is that stock offerings are not a sure way for online companies to raise their valuation quickly. While larger, more powerful web-based companies have done extremely well in past years through such offerings, these latest releases show that such constant growth can no longer be taken for granted.

These events all ultimately build up to a hotly anticipated public release of Facebook stock… eventually. While the company has been expected to begin selling to the public sometime around April of 2012, when they will be forced to release financial information that makes an IPO more appealing, confusing showings from tech companies like Pandora may cause them to rethink any such plans. Additionally, new legislation may push back Facebook’s deadline to release those financial numbers, easing any pressure to preemptively offer public stock.

As more web companies enter the ring the viability of many tech companies may become more clear. If a bubble has indeed begun to grow, the attitudes of other companies will likely reflect the confidence of Pandora and Groupon in their public trading habits.


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  1. ilev said on August 4, 2012 at 7:53 pm

    Doesn’t Windows 8 know that www. or http:// are passe ?

    1. Martin Brinkmann said on August 4, 2012 at 7:57 pm

      Well it is a bit difficulty to distinguish between domains and files for instance.

    2. Leonidas Burton said on September 4, 2023 at 4:51 am

      I know a service made by google that is similar to Google bookmarks.

  2. VioletMoon said on August 16, 2023 at 5:26 pm

    @Ashwin–Thankful you delighted my comment; who knows how many “gamers” would have disagreed!

  3. Karl said on August 17, 2023 at 10:36 pm


    The comments section under this very article (3 comments) is identical to the comments section found under the following article:

    Not sure what the issue is, but have seen this issue under some other articles recently but did not report it back then.

  4. Anonymous said on August 25, 2023 at 11:44 am

    Omg a badge!!!
    Some tangible reward lmao.

    It sucks that redditors are going to love the fuck out of it too.

  5. Scroogled said on August 25, 2023 at 10:57 pm

    With the cloud, there is no such thing as unlimited storage or privacy. Stop relying on these tech scums. Purchase your own hardware and develop your own solutions.

    1. lollmaoeven said on August 27, 2023 at 6:24 am

      This is a certified reddit cringe moment. Hilarious how the article’s author tries to dress it up like it’s anything more than a png for doing the reddit corporation’s moderation work for free (or for bribes from companies and political groups)

  6. El Duderino said on August 25, 2023 at 11:14 pm

    Almost al unlmited services have a real limit.

    And this comment is written on the dropbox article from August 25, 2023.

  7. John G. said on August 26, 2023 at 1:29 am

    First comment > @ilev said on August 4, 2012 at 7:53 pm

    For the God’s sake, fix the comments soon please! :[

  8. Kalmly said on August 26, 2023 at 4:42 pm

    Yes. Please. Fix the comments.

  9. Kim Schmidt said on September 3, 2023 at 3:42 pm

    With Google Chrome, it’s only been 1,500 for some time now.

    Anyone who wants to force me in such a way into buying something that I can get elsewhere for free will certainly never see a single dime from my side. I don’t even know how stupid their marketing department is to impose these limits on users instead of offering a valuable product to the paying faction. But they don’t. Even if you pay, you get something that is also available for free elsewhere.

    The algorithm has also become less and less savvy in terms of e.g. English/German translations. It used to be that the bot could sort of sense what you were trying to say and put it into different colloquialisms, which was even fun because it was like, “I know what you’re trying to say here, how about…” Now it’s in parts too stupid to translate the simplest sentences correctly, and the suggestions it makes are at times as moronic as those made by Google Translations.

    If this is a deep-learning AI that learns from users’ translations and the phrases they choose most often – which, by the way, is a valuable, moneys worthwhile contribution of every free user to this project: They invest their time and texts, thereby providing the necessary data for the AI to do the thing as nicely as they brag about it in the first place – alas, the more unprofessional users discovered the translator, the worse the language of this deep-learning bot has become, the greater the aggregate of linguistically illiterate users has become, and the worse the language of this deep-learning bot has become, as it now learns the drivel of every Tom, Dick and Harry out there, which is why I now get their Mickey Mouse language as suggestions: the inane language of people who can barely spell the alphabet, it seems.

    And as a thank you for our time and effort in helping them and their AI learn, they’ve lowered the limit from what was once 5,000 to now 1,500…? A big “fuck off” from here for that! Not a brass farthing from me for this attitude and behaviour, not in a hundred years.

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