MarketWatch First Take: Pandora gains after layoffs, which is just silly

Pandora Media Inc. is laying off employees just as the internet radio company is about to launch a new streaming service, Pandora Premium.

Wall Street’s response? A share gain of more than 6%, which is ridiculous.

Pandora P, +6.33% managed to cloud the bad news by also reporting that it beat its own forecast for revenue in the fourth quarter, but investors should remember that Pandora’s guidance for the quarter was well below Wall Street expectations. In fact, Pandora had to reduce its full-year revenue guidance in both July and October, so it is about time the company managed to exceed repeatedly reduced expectations.

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