Pandora stock falls to IPO price in second day trading

Pandora's second day on the New York Stock Exchange hasn't been much better than the first. In midday trading the stock was down over eight percent, amid a fairly stable market overall. The stock has traded as low as $15.50 in intraday trading, 50 cents below its IPO price.

The music service's continued weakness followed yet more doubts from financial analysts that the company could ever pull a profit. Simply put, Pandora's userbase may be growing faster than its growth in ad revenue, which makes up 87 percent of its total revenues.

IPO Scoop's John Fitzgibbon called it "a classic case of sizzle versus steak," where investors are now turning to the realities of the company's unprofitable business. Whether or not this continues to drag on the company's share price is to be determined.

Even so, it's not the only recent tech IPO to end up trading lower than it was introduced. "Content farm" Demand Media is another notable example: starting at a price of $17, it traded as high as $27 in the days following its debut. Now, it has sunk to below $15, also a victim of doubts over its business model.