After gaining 9.8% on Friday (6/24) Pandora Media showed strength on Monday (6/27) and closed back above its $16 IPO price. That’s only the second close above the IPO price in nine days of trading on the NYSE.
The stock opened Monday (6/27) at $15.55, up from Friday’s close of $15.37. It then moved up rapidly, peaking at $17.16 in early morning trading, before settling down around $16.50. The stock closed at $16.52, up 7.5% for the day.
RBR-TVBR observation: You can’t unbreak a broken IPO. Nonetheless, the underwriters and the NYSE can be a little less embarrassed since the stock is back above the IPO price after seven consecutive days of trading below it.
What heated things up? Dish Netowrk CEO Joe Clayton was quoted by the New York Times Dealbook blog as saying that he was interested in acquiring Sirius, Hulu and Pandora in naming things that he said are “up for grabs right now.” Clayton was once CEO of Sirius Satellite Radio, now part of Sirius XM.
That’s the sort of rumor that the smart money sells on as fools rush into the market.
The company’s fiscal Q1 results were certainly unimpressive. There were plenty of critics who said the anticipated IPO pricing was excessive, but that didn’t stop it from pricing even above that range.