Pandora shares prove popular in initial public offering

Internet radio service Pandora Media has become the latest technology firm to post strong numbers in an initial public offering.

The company closed its first day on the New York Stock Exchange at $17.42 per share, up nearly nine per cent from its opening price of $16.

Pandora Media's stock spiked early in the day, climbing as high as $26, but trailed off later in the day as fears over economic turmoil in Greece pushed much of the market into a slide.

The launch comes amid a resurgence in IPOs in the technology space. Earlier this year social networking site LinkedIn soared past its target price in an IPO which valued the company at upwards of $4.9bn.

Last week, solid state storage firm Fusion-io undertook its IPO, and social discount site Groupon is planning to make its debut on the market later this year.

Analysts see Pandora media's IPO as a good sign for the market, despite the late price drop. Enderle Group principal analyst Rob Enderle noted that the success shows that market interest is extending beyond social networks.

"Pandora's strength goes beyond social networking into more of a web-based offering," he told V3.co.uk. "We have investors that are interested in companies that are trending which aren't just social networking."

That confidence may not, however, extend to Groupon. Enderle warned that a flood of negative attention and complaints could combine with worries about the profitability of the company to scare investors away.