Pandora Sadly taking a beating to threat of new competition

Pandora shares, in turn, also ticked down Monday, falling nearly 5% to close at $16.95 on fears about competition from U.K. music service Spotify. The overseas music start-up announced last week it would be entering into the U.S. market after more than two years of speculation.

Pandora said earlier this month it had hit 100 million registered users. It also unveiled a new Web site designed to be faster and more social.

Shares of the online radio company have risen over 26% since its IPO last month.