NEW YORK (TheStreet) -- Pandora Media (P) stock is declining 11.34% to $9.69 on heavy trading volume on Monday afternoon after the company's board appointed founder Tim Westergren as CEO, effective immediately. Westergren replaces Brian McAndrews who is leaving the company.
The move is creating concern that the Oakland, CA-based music streaming provider will not consider selling itself, Barron's reports.
Pandora did not provide an explanation for McAndrews's departure or any new details on the company's growth strategy.
"We take the news of no change in strategy at face value, but also read into this CEO switch a potentially stronger commitment within Pandora to remaining independent, and also to obtaining a CEO who will be a higher profile spokesman for the company," FBR & Co. analysts said in note, according to Barron's.
Westergren's return could also signal that the company failed to find a buyer or that the business is still struggling, Axion Capital analysts noted, Barron's added.
"We see the founder's return as a tacit admission that Pandora continues to face meaningful challenges in the online music space," Axion Capital analysts observed.
So far today 13.29 million shares of Pandora have exchanged hands, compared with its average daily volume of 8.67 million shares.
Separately, Pandora has a "sell" rating and a letter grade of D at TheStreet Ratings because of the company's deteriorating net income, disappointing return on equity, weak operating cash flow, disappointing stock performance and feeble earnings per share growth.
You can view the full analysis from the report here: P
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