NEW YORK (TheStreet) -- Pandora (P - Get Report) shares are plummeting, down -15% to $23.96 on Friday, following the release of the company's first quarter earnings report.
Despite posting positive revenue estimates that beat analysts estimates by $5 million, and earnings that beat Wall Street estimates by 1 cent, the company's shares have taken a dip due to disappointing second quarter guidance.
The company lowered its guidance for the current quarter to between break even and 3 cents per share, falling short of analysts consensus 5 cents per share estimate.
The company reported a first quarter 69% increase in marketing spending to $61.9 million, while the cost of the content the internet radio service broadcasts increased by 26%.
Pandora is currently embroiled in a copyright infringement lawsuit brought by several major record labels, including Sony Music (SNE - Get Report), Universal Music (VIV - Get Report) and Warner Music (TWX - Get Report), who accuse the company of failing to pay for content produced before 1972.
Must Read: Warren Buffett's 10 Favorite Growth Stocks