Shares of Pandora (NYSE:P) shot up 8% out of the bell on Friday as investors continued to cheer its record sales results from the day earlier that trumped Wall Street expectations.
While the online radio provider posted a loss of $3.2 million, or 4 cents a share, for the second-quarter, revenue more than doubled to $67 million as subscriptions and advertising increased.
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Investors have long questioned the true value of web companies like Pandora and LinkedIn (NASDAQ:LNKD), which both recently revealed sunken revenue sources on their balance sheets and consistent losses but still achieved unprecedented values during their initial public offerings.
The media company forecast continued rapid revenue growth looking forward and said it intends to either break even or lose 2 cents a share at most in the current quarter.
Last period, Pandora said it would have earned 2 cents a share if one-time items were excluded. Analysts had predicted the company would break even.