ETF Trends
ETF Trends

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?]

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