Pandora IPO,,Buying Opportunity or Not ?
Pandora IPO (P:NYSE) came public today and became the latest internet based company to launch a successful IPO. The internet sector has shown us two incredibly hot deals recently, Yandex (YNDX:NASDAQ) being one and LinkedIn IPO (LNKD:NASDAQ) being the other. Both YNDX and LNKD skyrocketed on the first day of trading, only to fall back in subsequent sessions.Will Pandora lapse as well ? Maybe and here is why.
Market conditions were much more favorable when YNDX and LNKD first traded. The current turmoil we are currently seeing in Europe, could weigh on stocks and especially high beta names like Pandora. There are also the usual valuation concerns regarding this hot Pandora IPO. At today’s current share price, the Oakland based internet radio company. is trading at more than 20x sales.
