Stock exchange traded funds fell sharply Wednesday morning after the previous day’s rally as investors focused their attention on violent protests in Greece and Pandora Media’s (NYSE: P) initial public offering.
The dollar jumped Wednesday while the Dow shed over 100 points as investors shifted back to a “risk-off” posture. [Dollar ETF Rallies]
Traders will be closely watching Pandora on its first day of trading to see if the company, which streams music to listeners, can get the same pop as LinkedIn’s (NYSE: LNKD) IPO. [IPO ETF Won’t Catch LinkedIn First-Day Surge]
Pandora Media garnered $234.9 million in its initial public offering, selling 14.7 million shares at $16 a piece, reports Lee Spears for Bloomberg. The company originally offered shares at $10 to $12. The company currently has a market value of just over $2.6 billion, or around 19 times last year’s sales. Pandora generates 87% of its sales through advertisements that specifically target users, and the company also sells subscriptions for ad-free listening.
“There’s pent-up demand for high-growth, exciting business models,” remarked Scott Billeadeau, a fund manager at Fifth Third Asset Management in Minneapolis. “After LinkedIn, there’s definitely some chasing going on.” [Will ETF Join IPO Party?]