Accentuating the Pandora positive
Still, Pandora’s ability to go public at $16 a share — roughly double its initial target range of $7 to $9 — reflects a robust demand for Internet stocks, particularly those with a large base of users. Pandora is not yet profitable, like many of its peers, but the company has more than 90 million subscribers and is adding a new user about every second.
Demand for Pandora’s initial public offering was also amplified because of limited supply. There is not a flood of Internet companies rushing to market as there was more than a decade ago during the dot-com boom. And those that are going public, are showing restraint. Both Pandora and LinkedIn offered less than 10 percent of their total shares.