• $16 the initial public offering price for Pandora, the online radio station that predicts your tastes
• $20+ its current price on the stock market; it’s a situation that mirrors LinkedIn’s recent IPO source

• » Another sign of strong investor demand: Pandora’s IPO is more evidence of a growing tech bubble, though Pandora’s on a smaller scale than some of the other companies expected to do an IPO soon. Facebook and Twitter, once they do their IPOs, will likely make this look like a walk in the park. Which makes it understandable why some investors might think that Pandora — which hasn’t turned a profit — might get overshadowed a year or two from now. Pandora also faces some tough business challenges because of their reliance on expensive music licensing — ensuring that that their profit margins remain extremely tight.

Posted by Ernie Smith • Permalink