Pandora's Uncertain Future

By Chris Hill – Dec 6, 2012 at 8:01PM

NYSE: P

Pandora Media, Inc.

Here's what was behind Pandora's big one-day tumble.

The following video is from Wednesday's MarketFoolery podcast in which host Chris Hill, along with analysts Jason Moser and Bill Barker, discuss the top business and investing stories.

In this segment, shares of Pandora (NYSE: P) fell a dizzying 17%, and all the company did to deserve it was lower guidance for the fourth quarter. Here, our analysts discuss why a growth stock like Pandora is hit much harder when it lowers guidance than a larger, more stable company with a more proven business model, and whether Pandora's approach to profitability can ever truly work.

Chris Hill has no positions in the stocks mentioned above. The Motley Fool owns shares of Apple and Google. Motley Fool newsletter services recommend Apple and Google. We Fools may not all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. The Motley Fool has a disclosure policy.