Pandora's Stock Closed Down 16%

Pandora had a rough day of trading, closing down 16%.
Even though Pandora reported better than expected earnings on Thursday, its stock tanked today

Last quarter, Pandora saw revenues of $US194.3 million, well ahead of the $US177.7 million analysts expected. Pandora also reported a loss of $US0.13 per share, which is a penny better than analysts expected.

But the stock is down because of Pandora’s disappointing guidance for Q2. Its guidance ranged from break-even to a profit of $US0.03 per share on revenue $US213 million to $US218 million. But analysts were expecting a profit of $US0.05 a share on revenue of $US219 million.

Despite how investors reacted, Pandora is still growing. In Q1, listening hours grew 12% year-over-year to 4.8 billion. Pandora’s number of active listeners also grew 8% to 75.3 million people.

NOW WATCH: Tech Insider videos

Want to read a more in-depth view on the trends influencing Australian business and the global economy? BI / Research is designed to help executives and industry leaders understand the major challenges and opportunities for industry, technology, strategy and the economy in the future. Sign up for free at research.businessinsider.com.au.