Online radio company Pandora Media (NYSE:P) shocked many tech investors earlier this week when it announced that it plans to raise some serious capital.
And while oftentimes investors treat such dilution with the utmost contempt, the market reacted quite the opposite way. In fact, Pandora's shares soared nearly 5% higher in the trading session following the announcement. This is undeniably a shrewd move on management's part by capitalizing on Pandora's sky-high share price. However the business is also facing a series of looming risks that would have many investors shaking in their boots. In this video, Fool contributor Andrew Tonner breaks down Pandora's announcement and why it might not prove as delightful as investors initially thought.