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Pandora shares climb in IPO

pandora nyseIt looks like investors still have a healthy appetite for consumer Web companies. Online music service Pandora started trading on the New York Stock Exchange this morning, and as of 10:35am Eastern time, it was trading at $20.75 per share.

If that doesn’t quite match LinkedIn’s meteoric IPO, when shares more than doubled on their first day of trading, well hey, it’s early. It has been a steady climb since Pandora first filed for its IPO — shares were initially priced between $7 and $9, then were set at $16 for the IPO, and started trading at $20 this morning.

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The current share price values Pandora at more than $3 billion, which is pretty good for a company that brought in $137.8 million in revenue during its most recent fiscal year. There are still concerns about its long-term business model, especially about its rising music costs. But today seems like a good day, not just for Pandora and its investors, but also for other Web companies that plan to go public, including Groupon.

[photo by Pandora CTO Tom Conrad, via Foursquare]

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