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Pandora Hits a Fever Pitch, But Can It Be Sustained?

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Drum roll, please. (Just no prolonged solo, we beg of you.)

Pandora made a big debut on the NYSE. So big, in fact, that shares climbed 50% above the IPO price of $16 per share -- echoing the strong debut made by LinkedIn roughly a month ago. Who knows? We may even see Pandora's stock more than double -- like LinkedIn's -- before the closing bell.

The company's performance flies in the face of analysts who don't see a bright future for the streaming service. Despite boasting 94 million users and an increase in sales and usage, Pandora has yet to make a profit. Combine that with the rising competition from Apple, Google, and Amazon in terms of online music services, Pandora will have its work cut out for it to maintain that 50% of internet radio market.

Speaking with TheStreet, IPO Desktop president Francis Gaskins claimed that Pandora can't make money "on a continuing, sustaining basis." "What will happen with Pandora is it will open [well], but it won't make any money in the after-market -- there will be a lot of people coming in based on sheer enthusiasm," he said.

And bear in mind, LinkedIn had a strong debut, but has since fallen 40%.

(See also: LinkedIn 101: The Journey to $90+ a Share)

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POSITION:  No positions in stocks mentioned.

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