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Pandora Crushes Earnings; AM/FM Radio Officially Dead

Stocks in this article: P GOOG FB

NEW YORK ( TheStreet) -- Jim Cramer repeats several key themes almost daily at TheStreet as well as on CNBC's "Mad Money" and "Squawk on the Street."

Among my favorites: Do your homework!

Jim and I take different approaches to what we do, but his Do your homework mantra reigns universal. No matter who you are or what you do -- an individual investor, an analyst, a portfolio manager, a TV personality, a guy who writes several opinion pieces a day, a salesman, a grad student, a great singer/songwriter -- that's the best advice. Do your homework!

Homework looks different for every person and across situations, but, generally speaking, as I interpret Cramer's war cry, it means Do more!

As TheStreet's Chris Ciaccia detailed Thursday afternoon, Pandora (P) crushed Q4/year-end earnings. The stock flew, giving back virtually nothing on the news that CEO Joe Kennedy will step down upon the naming of his successor.

So much to say about this and the entire Internet radio space that I have multiple articles up ( See my article history) on the subject. Here we concentrate on the earnings and Kennedy's resignation.

If you watched my TheBeach Meets TheStreet conversation with Pandora Co-Founder and Chief Strategy Officer Tim Westergren, you know that the founders can take credit for the Music Genome Project, but Joe Kennedy came up with the idea -- back in 2004 -- to disrupt traditional AM/FM radio. Under his leadership, Pandora accomplished that goal.

We now live in a world where terrestrial radio is, for all intents and purposes, dead. To be accurate, it's on life support. But, practically speaking, the platform has done nothing but feebly react to what Pandora and a handful of others pioneered -- Internet radio.

Soon, what we have come to take for granted as an option in a car will cease to exist -- the AM/FM dial. It will go away. Give it 10 years. If that. Traditional radio's only chance at semi-survival: More Pandora knock-offs such as Clear Channel's iHeart Radio. Or, hold your laughter, something innovative.

So Kennedy heads out a legend. This is Steve Jobs-level stuff here. Jeff Bezos level. Pandora literally turned an entire space on its ear and now it leads -- alongside Google (GOOG), Facebook (FB) and Twitter -- the mobile advertising revolution.

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