This Day On The Street
Continue to site
ADVERTISEMENT
This account is pending registration confirmation. Please click on the link within the confirmation email previously sent you to complete registration.
Need a new registration confirmation email? Click here

Pandora's a $10 Stock: Trefis

The following commentary comes from an independent investor or market observer as part of TheStreet's guest contributor program, which is separate from the company's news coverage.

NEW YORK ( Trefis) -- Pandora Media (P) recently released its business metrics for the month of March 2012. It appears that although the company is still growing at a strong pace, it has slowed down a bit. Pandora is looking to continue its fast-paced expansion despite increasing competition from Clear Channel Radio and Spotify, which has expanded via Facebook .

Could this competition eat up its growth as the year progresses? This is one of the major questions that investors will be pondering as the company releases its quarterly earnings.

Click here to see our complete analysis for Pandora.

Pandora reported 88% growth in listener hours for March 2012, amounting to more than 1 billion. This figure stood at 567 million in March 2011.

If we look at 2011 overall, the company's total listener hours were close to 8.2 billion, which implies about 680 million average monthly listener hours. This means that listener hours for March 2011 were below average, which suggests that the growth rate for the coming months could be even lower than 88%, as it would be compared to a higher base.

The active listener growth for March 2012 was also lower compared to that of full-year 2011. Although growth will continue to be very healthy, it is likely to slow as Pandora faces a tougher prior-year comparison.

Our price estimate for Pandora stands at $10.

Click here to find out how a company's products impact its stock price at Trefis.

Like our charts? Embed them in your own posts using the Trefis Wordpress Plugin.

This commentary comes from an independent investor or market observer as part of TheStreet guest contributor program. The views expressed are those of the author and do not necessarily represent the views of TheStreet or its management.

Check Out Our Best Services for Investors

Action Alerts PLUS

Portfolio Manager Jim Cramer and Director of Research Jack Mohr reveal their investment tactics while giving advanced notice before every trade.

Product Features:
  • $2.5+ million portfolio
  • Large-cap and dividend focus
  • Intraday trade alerts from Cramer
Quant Ratings

Access the tool that DOMINATES the Russell 2000 and the S&P 500.

Product Features:
  • Buy, hold, or sell recommendations for over 4,300 stocks
  • Unlimited research reports on your favorite stocks
  • A custom stock screener
Stocks Under $10

David Peltier uncovers low dollar stocks with serious upside potential that are flying under Wall Street's radar.

Product Features:
  • Model portfolio
  • Stocks trading below $10
  • Intraday trade alerts
14-Days Free
Only $9.95
14-Days Free
To begin commenting right away, you can log in below using your Disqus, Facebook, Twitter, OpenID or Yahoo login credentials. Alternatively, you can post a comment as a "guest" just by entering an email address. Your use of the commenting tool is subject to multiple terms of service/use and privacy policies - see here for more details.
Submit an article to us!
SYM TRADE IT LAST %CHG
AAPL $130.28 0.00%
FB $81.53 0.00%
GOOG $565.06 0.00%
TSLA $218.42 0.00%
YHOO $44.52 0.00%

Markets

DOW 18,080.14 +21.45 0.12%
S&P 500 2,117.69 +4.76 0.23%
NASDAQ 5,092.0850 +36.0220 0.71%

Partners Compare Online Brokers

Free Reports

Top Rated Stocks Top Rated Funds Top Rated ETFs