Pandora (P) has been caught on the losing end of the forces of creative destruction in the music industry yet again.
As rumors continue to swirl that Apple (AAPL) may be building out its own music station, Pandora's investors got spooked.
Shares of the Internet music company plunged more than 10% Monday.
Apple is inching closer and closer to Pandora's turf.
According to several published reports, Apple signed a deal with Warner Music Group to gain access to its slate of songs. Could that kill consumers' passion for "free Internet radio:?"
Many StockTwits traders clearly think so.
Pandora was certainly a good company to bet against Monday. The consumer Internet company has had a rocky path since going public in 2011. Sales have been improving, but it's still struggling to be profitable.
Even after today's drop, Pandora is up 64% in 2013, though it's still trading 5% below its IPO price.
Speaking of time flying.
The theory of creative destruction was developed by early 20th century Austrian economist Joseph Schumpeter. Innovation, he explained, kills industries and creates new ones. If he were still with us, he'd be watching the latest music industry battles very carefully.
Shares of Pandora plunged nearly 18% Thursday, following a news report that said Apple was planning to launch a rival Internet radio service next year.
Thursday afternoon, Bloomberg reported that talks between Apple and major music labels had intensified recently. Citing people familiar with the situation, Bloomberg said a deal to launch an ad-supported Internet radio service could be reached by mid-November, with a potential launch date sometime during the MORECatherine Tymkiw - Oct 25, 2012 4:06 PM ET
|Donald Trump doubles down on 35% tax for businesses that ship jobs out of U.S.|
|China warns Trump: Good luck bringing jobs back to America|
|American Airlines flight attendants want new uniforms recalled|
|Netflix now lets you watch your favorite shows offline|
|Donald Trump bashes 'SNL' on Twitter after sketch about him tweeting too much|