Although we don't believe in timing the market or panicking over market movements, we do like to keep an eye on big changes -- just in case they're material to our investing thesis.
What: Shares of music streaming specialist Pandora Media (NYSE:P) plunged by as much as 10% Tuesday amid a broader pullback in the tech sector.
So what: Today's drop extends yesterday's nearly 6% slide, but it's worth noting that Pandora Media stock had already jumped nearly 35% prior to that since early May. The tech-heavy Nasdaq Composite dropped by 1.4% Tuesday, pulling many high-flying tech names down with it.
Now what: But Pandora, in particular, faces concerns over whether its previously impressive growth is stalling. While Pandora's adjusted quarterly revenue grew 54% year over year in the first quarter, listener hours and active listeners only rose 12% and 8%, respectively, over that period. That doesn't mean Pandora can't still make operational improvements to achieve sustained profitability over the long term, but I personally remain content watching from the sidelines to see how the company fares when it announces second-quarter results later this month.