The Excuses Channel: Did Pandora’s CEO Really Blame the “Fiscal Cliff”?
Pandora (P) shares plunged almost 20% Tuesday, before partially recovering, after the online radio operator disclosed that results for the fiscal fourth quarter, ending January 31, won’t be as favorable as expected. CEO Joe Kennedy gave the Wall Street Journal a non-mea culpa, instead blaming budget negotiations in Washington that could result in a combination of tax hikes and spending cuts, also known as the fiscal cliff, which some believe would cause a new recession.
“As we see that caution, our visibility goes down, and we have to be more cautious,” Kennedy told the Journal.
Pandora is now down about 55% from its opening day of trading following an IPO. Blaming the wider economic situation, especially for a company with rapidly increasing acceptance among consumers and advertisers, seemed, well, a little lame.
From the editors of YCharts.