USA Today said that Pandora’s first day of trading on the New York Stock Exchange will be on Wednesday, and the financial media continue to predict heavy investor interest in the Internet stock’s IPO.
That’s even with the company failing to achieve a profit.
For example, Reuters reports that in the quarter ending in April, Pandora had revenues of $51 million and a net loss of $6.8 million.
It its analysis of the stock offering, The Street reports that “Pandora Media … is losing money even as its revenues increase.”
USA Today adds that Pandora “has been in the red for years” – based on data contained in U.S. Securities and Exchange Commission documents.
“They're basically operating fairly close to break-even, and it's better than if they were burning through cash,” Nick Einhorn, analyst at Renaissance Capital, told USA Today. “Obviously, in the long term, the question is whether it will be profitable.”
There is some positive news on the revenue front about the company. Pandora said its revenues “more than doubled in the quarter ended on April 30 to $51 million from $21.6 million in the same period a year earlier,” based on data in SEC filings, according to The Street. In addition, Pandora – which earns money mostly from advertising – with $90 million in the recent quarter, translating to an increase of 137 percent over the prior year numbers, according to Minyanville.
Pandora’s range for IPO shares is between $10 and $12, upped from an earlier range of between $7 and $9. In addition, the company is expected to sell as many as 14.7 million shares, as opposed to the earlier number of 13.7 million shares, according to a story carried by The Associated Press.
Pandora, an Internet radio service, has 90 million registered users, according to TechZone360.
Want to learn more about the latest in communications and technology? Then be sure to attend ITEXPO West 2011, taking place Sept. 13-15, 2011, in Austin, Texas. ITEXPO offers an educational program to help corporate decision makers select the right IP-based voice, video, fax and unified communications solutions to improve their operations. It's also where service providers learn how to profitably roll out the services their subscribers are clamoring for – and where resellers can learn about new growth opportunities. To register, click here.
Oracle this morning revealed plans to buy cloud company NetSuite for $9.3 billion. The deal is expected to close later this year.
At the end of the week the free upgrade window for Windows 10 closes. This has been an interesting experience because Windows 10 for the most part ste…
The move from hardware- to software-based networking solutions, along with the fact that our still recovering economy has kept many businesses cautiou…
Recently, the police's ability to access someone's phone has been a hot topic in American news. I'm sure we all remember the ordeal involving Apple an…
The sale of Yahoo's core assets to Verizon for a reported $4.83 billion, leaving Yahoo shareholders with roughly a $41 billion investment in Chinese I…