The music streaming service Pandora took a hit in the stock market.
Web2Carz Senior Writer
Published: March 8th, 2012
Pandora's shares fell 24 percent, reaching a low of $10.86 on Wednesday.
andora, the music streaming service that bills itself as the alternative to traditional radio, took a tumble in the stock market recently. Its shares fell 24 percent, reaching a low of $10.86 a share on Wednesday.
This follows Tuesday’s posting by Pandora of a wider fourth-quarter loss than was expected. Analysts are blaming the increasing cost of providing content as well as the fact that the Pandora mobile app has proven to be less remunerative than the company had hoped.
Although the company is adding listeners at a steady rate, the time frame during which Pandora is seeing a profit has grown, which has led Citi analyst Mark Mahaney to lower his rating from “buy” to “neutral.”
Pandora has responded by announcing that it will be making monthly announcements about its key metrics about the number of users, how long they listen, and the audience’s total share of the radio audience. Pandora hopes this move will help sway advertisers by illustrating a steady rise in its audience.