Why Pandora Media Inc. Stock Plummeted Friday

Shares of streaming music company Pandora Media (NYSE: P) were slammed on Friday, falling as much as 26.8%. The stock is down about 24.7% at the time of this writing.

The decline follows the company's third-quarter earnings release after market close on Thursday, which included worse-than-expected revenue and weak guidance for its fourth quarter.

Pandora's uninspiring outlook for its fourth quarter was probably the worst news from the report, as revenue was only slightly below the consensus analyst estimate. Guidance, however, was dismal. Management said it expected fourth-quarter revenue to be between $365 million and $380 million. This would represent a surprising year-over-year drop compared to fourth-quarter revenue of about $393 million in the year-ago quarter.

Continue reading

Source: Fool.com