In just a few minutes the opening bell of the New York Stock Exchange will ring, and investors who have been following the Pandora IPO will swarm to buy shares. It could be the digital version of frenzied Black Friday shoppers squeezing through a Walmart door at 4:00am after Thanksgiving Day. Of course, this metaphor can be extended to the predicted winners and losers of the day. Early investors will be like those shoppers at the head of the line who snatch up all the great deals within minutes. And the losers on this IPO day will be those who didn't want to camp out overnight, left to fight for scraps (or in this case, a way overpriced share price, only to see it come crashing down back to its opening price).
As I mentioned last night, I expect a sharp jump in share price early, only to fall back to 10-20% above the IPO price at the closing bell. But this opening day ride will be quite the rollercoaster throughout the trading hours.
Stay tuned to pnosker.com all day for the latest live updates for the Pandora IPO.
Disclosure: Author has purchased 100 shares of Pandora (P) at a limit-order price of $20 this morning.
**9:50am update** – Pandora shares jumped more than 50% at the start of trading, though now they are settling down at a price around $23 for the time being.
**10:50am update** – The early morning rally has cooled off considerably, with share prices dropping sharply to settle at 20.43, up only about 2% from the $20 public opening price. Could shares actually finish the day below their open?
**12:30pm update** – It appears that the steep slide in stocks overall today is pushing the Pandora price down as well. As of now, the stock is only at 20.13, up less than 1% of the $20 price available to the public (though still up 25% if you were somehow able to get in at $16). The price has been quite stagnant following the morning 30 minute rush, so perhaps my prediction will be off after all.