Oakland, Calif. — After an IPO with shares priced at $16 that rose as high as $22 in early trading this week, streaming music service Pandora has in the past two days seen its share price plunge to $13.26.
Following the IPO on Tuesday, Pandora’s shares reached $22 before closing at $17.42 on Wednesday. By Thursday afternoon, the company’s shares fell to $13.26, and on Friday were trading near that level.
Pandora is competing with similar companies, including Sirius XM Radio, MOG, Napster, Rhapsody and others that offer streaming music.
“Pandora has been the ‘survivor’ in Internet radio, but we believe digital music will have a wider array of competitors over the coming year,” BTIG analyst Richard Greenfield said in a research note today.
The company’s IPO raised nearly $234.9 million.