Pandora warns investors to expect a loss in the short term as the rapid growth of its early days starts to slow. Pandora has grown to become the Internet's top radio service. They say to have a rapid growth in both listeners hours and advertising revenue. There is no competition between Internet radio market right now, but they might have some in the future.
Pandora plans to sell 10 million shares of its stock, also Crosslink Capital Inc. would be selling an additional 4 million stocks. Pandora shares were off 4.1% at $23 each in after-hours trading. The company's number of shares outstanding will increase a little more than 9%, which makes each share slightly less valuable. Pandora has over 200 million registered users and Clear Channel's iHeartRadio surpassed 30 million registered users. Even with Pandora having so many registered users, they only represent about 7% of US radio listening and might compete against iTunes Radio soon. Pandora spokespeople said "the company is excited about the introduction of iTunes Radio, as it will speed the shift of terrestrial radio listening to digital, not necessarily Pandora users shifting to iTunes Radio." In conclusion, Pandora might start off slow but things will pick up again and they have so much time to make Pandora better.