Pandora: The money-losing music machine
But there's no denying that Sirius XM has suffered while investors trip over themselves to gush about Pandora.
It may be coincidence -- or the mere fact that the entire market has sunk this month on fears about the broader economy -- but since the Pandora hype machine (not to be confused with another popular online video service) began in earnest, Sirius XM shares have taken a huge hit.
Pandora said on June 3 that it expected to price its shares between $7 and $9. Its road show began soon after that. Since then, Sirius XM stock is down 15%, compared to just a 4% drop for the Nasdaq.
But analysts said it's a mistake to think that Pandora will make Sirius XM irrelevant.
"Let's not get emotional or overreact. Pandora is not going to wipe Sirius XM out," said Martin Pyykkonen, an analyst with Wedge Partners in Denver who follows Sirius XM and started coverage of Pandora Wednesday.