Pandora stock falls as Apple music service reports resurface


The Pandora Media Inc. Web site is displayed on a computer monitor in San Francisco, California, U.S., on Tuesday, June 14, 2011. (David Paul Morris/BLOOMBERG)
October 25, 2012

Trading in Pandora shares was halted after the stock took a dive Thursday on a Bloomberg report that Apple may be launching its own advertising-supported Internet radio service.

The service may come as early as next year, the report said, citing unnamed “people with knowledge of the talks.”

Shares of the streaming music company opened at $9.29 Thursday but fell over $2 or 11 percent when the reports becan circulating. It recovered slightly before closing at $8.20.

All Things Digital reported that the stock drop tripped two circuit breakers in a matter of 10 minutes. Reuters reported that trading had been halted.

This is not the first time that rumors about an Apple service have played havoc with Pandora’s stock price.

Ahead of Apple’s iPhone 5 announcement in September, similar reports sent Pandora’s stock down. When Apple did not reveal a streaming service during its event, Pandora shares saw a spike.

Apple and record companies declined to comment to Bloomberg on its report, which said that talks between the tech giant and the Universal Music Group, Warner Music Group and Sony Music Group were still in progress.

While Apple has seen great success with its iTunes store, the company does not officially support streaming music — though users may store and download tracks they have purchased to their Apple devices via its iCloud service.

Pandora, which went public in June 2011, was originally priced at $16 per share.

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Apple’s online radio service said to challenge Pandora in 2013

With iPad mini behind it, Apple prepares for earnings report

Apple’s iPad mini: the pros and cons

Hayley Tsukayama covers consumer technology for The Washington Post.
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