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 current quarter and fiscal year caught many Wall Street analysts by surprise.
Pandora said it expects a net loss of between 6 and 9 cents per share in its fiscal fourth quarter, compared with an expected 1 cent per share profit.
For the full-year, Pandora expects to loose between 9 and 12 cents per share, while revenue is expected to range between $422 million and $425 million. Analysts were looking for a full-year loss of 6 cents per share on sales of $429 million.
Pandora stock has been volatile this year. After hitting a high above $14 in March, the stock has struggled break above $12 a share. It sank to a low of $7.18 in early November but has since regained ground, closing at $9.45 a share on Tuesday, before the results were released. Investors have been nervous about the possibility that Apple (AAPL) could enter the online radio market. Pandora also faces tough competition from rival Spotify as well as concerns about royalty payments to musicians.
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
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