Oakland, Calif.-based Pandora has more than 125 million users, and listener growth is doubling on an annual basis. Still, profits elude the company. Fears are growing Pandora may not be profitable for some time. The company competes in the paid radio market with Sirius XM (SIRI) and Spotify.
Pandora noted on a conference call Tuesday that mobile monetization would take place over the next 18 to 24 months, and analysts are worried about the company's ability to execute.
Citigroup analyst Mark Mahaney downgraded Pandora, adding to those fears, based mainly off the the company's inability to monetize mobile.Mahaney noted that a good portion of the long thesis is still intact but content costs are constantly rising, and Pandora's inability to generate revenue from its mobile platform (which Mahaney said is over 70% of usage) is a concern. He noted that fiscal year 2013 monetization will be flat, which "blows up the
Select the service that is right for you!COMPARE ALL SERVICES
- $2.5+ million portfolio
- Large-cap and dividend focus
- Intraday trade alerts from Cramer
- Weekly roundups
Access the tool that DOMINATES the Russell 2000 and the S&P 500.
- Buy, hold, or sell recommendations for over 4,300 stocks
- Unlimited research reports on your favorite stocks
- A custom stock screener
- Upgrade/downgrade alerts
- Diversified model portfolio of dividend stocks
- Alerts when market news affect the portfolio
- Bi-weekly updates with exact steps to take - BUY, HOLD, SELL
- Real Money + Doug Kass Plus 15 more Wall Street Pros
- Intraday commentary & news
- Ultra-actionable trading ideas
- 100+ monthly options trading ideas
- Actionable options commentary & news
- Real-time trading community
- Options TV