pandora logo 300x225 Pandora Slowly Looses Steam on First Day TradingPandora, which lets users create their own web personalized “stations” and then makes recommendations based on users’ tastes, traded on the stock market today for the first time. With an IPO price of $16 a share and a $2.6 Billion valuation, Pandora’s stock opened today at $20 and then immediately soared to $26, an increase of more than 60 percent. In mid-day trading, the company’s shares began to fall with major market indices down over 1 percent; as protests over Greece’s austerity plan turned violent; and ended the regular session trading at $17.42, nearly nine percent higher than the $16 offering price.

The company generates most of its revenue from advertising on its website and subscription revenues only account for less than 10 percent of sales. The company which by the end of April had 90 million listeners, lost $1.8 million on revenue of $138 million last year, and said in documents filed with the SEC (Securities and Exchange Commission) that it expects to incur operating losses through at least fiscal year 2012.

Pandora’s competition include: traditional radio, online services such as Spotify and Grooveshark, and music lockers from Apple, Amazon and Google.

The internet IPO boom of 2011

The IPO market is showing a boom in 2011. Groupon recently priced a $750 million IPO and Zynga is expected to announce an offering soon. Meanwhile, Facebook is reportedly considering an IPO in the first quarter of next year at a around $100 billion valuation. LinkedIn Corp. was last month’s popular IPO and its shares have lost about 39% since then.

Tagged with:
 
Hottest IT Skills in 2013 – Cloud, Mobile and BI
In 2012, more than 1.7 million jobs in the field of cloud computing remained unoccupied, according to analysts firm IDC. READ MORE
How Cloud Computing Influences Digital Marketing
Cloud marketing has the ability to drastically change the ways in which they reach and engage their audience, particularly with regard to distributing and storing mission-critical data. READ MORE
Gartner: BYOD to Take Center Stage For Mobile App Use by 2017
More and more companies encourage their employees to work on their devices, thus reducing the cost of computer equipment, but also increase the cost to maintain licenses and safety. READ MORE
Maturity in the Cloud: Start Thinking Like a Grown-Up
Despite the inclination to wait until all of the cloud’s kinks have been worked out, holding off on cloud initiatives until the industry matures won’t guarantee success. READ MORE
PwC: Cloud, SaaS and Mobile Are Changing Software Industry
The software industry is undergoing major changes by trends such as cloud, SaaS, mobile technology and the “consumerization of IT”. READ MORE
10 Cloud Computing Game Changers
Here are the ten most influential cloud computing companies, and the reason why. READ MORE