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.
Streaming radio service Pandora may face a lot of competition. But the company is still attracting subscribers ... and advertisers.
Pandora (P) reported a quarterly loss Thursday after the bell. But sales topped forecasts thanks to an increase of 700,000 new listeners from a year ago. The stock rose as much as 13% in early trading Friday and hit a new 52-week high in the process. Although things didn't end too MOREPaul R. La Monica - May 24, 2013 4:01 PM ET
Shares of Pandora plunged late Tuesday after the Internet radio service issued a disappointing outlook for sales and earnings.
Pandora's stock (P) fell as much as 20% in after hours trading.
The Oakland, Calif.-based company said it earned 5 cents per share, excluding charges, in its most recent quarter. That beat analysts' expectations. Sales rose 60% to $120 million, which was better than expected.
But the guidance Pandora offered for losses in the MOREBen Rooney - Dec 4, 2012 4:58 PM ET
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
If you have an Elton John channel on Pandora (P), an appropriate song to be streamed today would be Sad Songs (Say So Much). "Guess there are times when we all need to share a little pain."
Shares of Pandora plunged more than 17% Friday following multiple reports that Apple (AAPL) was looking to launch its own streaming radio service. Fortune's Apple 2.0 blogger Philip Elmer-DeWitt has more on the radio MOREPaul R. La Monica - Sep 7, 2012 12:12 PM ET
Not a member yet?Sign up now for a free account
|OPEC Decision: To squeeze US shale oil producers by forcing prices down|
|Best Buy crashes amid Black Friday deals|
|Shoppers rejoice! Black Friday is here|
|Black Friday on strike: Walmart workers vow big protests|
|Black Friday's real deal: Cheap gas|