Diamonds and Dogs
3/8/13Skullcandy Inc. (SKUL)
Skullcandy isn't leaving a sweet taste in investors mouth's today, down 22.47% at $5.21. The headphone and audio company saw its shares fall after a few intertwined factors. First, Skullcandy announced that it would likely incur losses during the first quarter due to declining sales. Secondly, the company's CEO Jeremy Andrus stepped down unexpectedly leaving investors perplexed. The news forced analysts to downgrade the company and cut price targets nearly in half. For example, Northland Capital downgraded Skullcandy from outperform to market perform and cut their price target from $12 to $6. The company fell to a new 52-week low today.
Pandora Media Inc. (P)
Pandora Media is making investors dance today, up 17.90% at $13.83. The internet radio company saw its shares skyrocket after better than expected earnings. For the fiscal fourth quarter, Pandora announced that it lost $0.04 per share, beating analysts' estimates of a loss of $0.05 per share. Sales rose 54% to $125.1 million, which again beat Wall Street's forecast of $122.8 million. Furthermore, total listener hours increase 53% with mobile sales more than doubling year over year. One last factor that is contributing to the company's move is news that CEO Joseph Kennedy will step down from his position. Analyst Doug Anmuth from JPMorgan said that Kennedy is leaving the company "extremely well positioned." Pandora set a new 52-week high today.