NEW YORK — Investors learned a hard lesson Wednesday about red-hot Internet companies: They can go cold very quickly.
Shares in the latest Internet initial public offering sensation Pandora Media Inc. surged 48 percent in early trading in their first day on the open market but reversed course and closed below their opening price on the New York Stock Exchange. Growing doubt increased about whether the online radio service would ever turn a profit led to the drop.
Those who bought at the $16 IPO price are still ahead, but almost anyone who bought during market hours Wednesday suffered a loss. The stock closed the day at $17.42.
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