When you’re a sizzling stock like Pandora (P) — shares of P stock have climbed more than 310% during the past 12 months — reporting solid earnings simply isn’t enough.

P stock gained more than 4% in the lead-up to this afternoon’s Pandora earnings report. But when the company’s third-quarter numbers actually came out, Pandora stock soon began moving in the other direction.

And the bizarre thing about the downward movement for P stock?

Pandora earnings were impressive.

A High Bar for Expensive P Stock

Don’t believe Pandora stock investors are giving the music company a high bar? Well, take a look at a few highlights from the “not good enough” Pandora earnings release that had P stock investors selling after hours:

• Revenue for Pandora grew 50% year-over-year, tallying a record $180.4 million and handily beating the expectations of P stock analysts. The consensus estimate was for $175.6 million in sales.
• Earnings came to 6 cents per share of P stock excluding items, in line with the consensus from Pandora stock analyst estimates.
• Mobile advertising revenue for P exceeded $100 million — a 58% year-over-year jump.
• Total Pandora listener hours tallied 4.18 billion, 17% better than in Q3 of last year.
• Pandora’s share of U.S. radio listening was more than 8% in October 2013, up from 6.6% in October 2012.
• P also announced that it had 70.9 million active users in Q3 — good for 20% year-over-year growth.

And it’s not like the Pandora earnings release fell dramatically short when it came to the company’s outlook either. The only black mark was lower-than-expected forecasts for Q4 sales, while the rest of the numbers were at least in line with expectations.

The Pandora earnings report showed that management expects revenue of $185 million for Q4, short of the current P stock analyst consensus for $187.26 million. But the earnings range of 2 to 4 cents per share of Pandora stock met the the current 4-cent consensus.

Plus, Pandora expects anywhere between $657 million to $662 million in sales for the full year, far more than the $645.5 million that P stock analysts had slated. And the EPS range of 3 to 5 cents topped the 3-cent consensus.

Still, Pandora stock investors sent the equity down roughly 3% in after-hours trading. Nothing brutal, but hardly anything to smile about.

Of course, prior to the report, InvestorPlace editor Jeff Reeves did note that Pandora earnings had to be perfect, especially considering because P stock currently is trading for nearly 100 times forward earnings and nearly 10 times sales.

On top of that, competition is heating up in the streaming music space, with tech giants like Apple (AAPL) and Google (GOOG) all trying to get in on the action.

All in all, it’s hardly surprising that P stock is facing a sky-high bar.

As of this writing, Alyssa Oursler did not hold a position in any of the aforementioned securities.