Pandora Shares Drop 18% on Rumor of Rival Apple Service

Pandora Media shares plummeted by as much as 18% on Friday following a rumor that Apple is working on a rival radio service.

The Wall Street Journal reported on Thursday night that Apple is in talks to license music to create a free ad-supported radio service that works on mobile devices, Macs and PCs, just like Pandora. Thereport was enough to send Pandora's stock spiraling down as low as $10 a share Friday morning from its previous day's close of $12.57.

In the past year, Pandora has experienced increased competition in the online radio market from Spotify's radio feature and Clear Channel's IHeartRadio app. However, Apple may pose a particularly grave threat to the company.…
Continue reading...

More About: apple, apple itunes, pandora, pandora radio