A sad song from Pandora

Shares of Internet radio company plunge as losses, content costs mount

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Like many of you, I'm a music lover, and Pandora's song-streaming service, which allows users to create customized online radio stations, is right up my alley.

But as someone who has to objectively assess the business prospects of tech companies, there wasn't much to get enthused about in Pandora's February 2011 S-1 filing, which detailed a history of net losses, debt of $84 million, and the inherent uncertainty of a nascent market (online streaming radio).

That's been reflected in Pandora's stock price since going public at $16 last June. After topping out at $26 amid the IPO hype, shares have mostly been below $16 and often have struggled to stay above $10.

Clearly there still isn't much about Pandora to excite Wall Street. I'm not sure if that's going to change.

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