Fresh reports that a long-rumored Apple iTunes Radio Service will arrive in February have caused shares of Pandora Media Inc. (NYSE: P) to swoon over the past two days.
Yesterday the selloff was so abrupt it triggered two circuit breakers that briefly halted trading in Pandora stock. Shares closed at $8.20 yesterday (Thursday), down nearly 12%, and have edged lower today.
The Bloomberg News report yesterday afternoon indicated Apple Inc. (Nasdaq: AAPL) is very close to a deal with the major record labels that will enable it to launch a very similar ad-based music streaming service.
Fears of such a service, possibly called iTunes Radio, drew the quick and nasty negative reaction on Wall Street.
"If the Apple radio rumors are true, Pandora has every reason to be scared - terrified, even," wrote Tom Cheredar in a commentary for Venture Beat.