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Pandora IPO debacle: Shares plunge following debut

In the second day of trading, shares of the online radio company fall below the IPO price.

Headshot of Larry Dignan
Headshot of Larry Dignan
Larry Dignan

Pandora's high-profile initial public offering has turned into a nightmare as shares fell through the $16 pricing floor today.

The online radio company priced its IPO at $16 a share on Tuesday night. From there, Pandora rocketed north of $22 yesterday. (Shares closed at $17.42 yesterday.) That price turned out to be a sweet spot to short-sell Pandora. Shares today cratered 24 percent, closing at $13.26.

We've noted all the problems with Pandora, but the chart says it all. For Pandora's sake, let's hope it doesn't wind up in CBS News' dot-com IPO hall of shame.

This story was originally posted at ZDNet's Between the Lines as "Pandora's IPO debacle: Shares plunge through offering price after a day."