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
See Cramer's multi-million dollar portfolio for FREE and get his new book Get Rich Carefully! Learn More

Is Pandora Panicking; Should Investors?

NEW YORK (TheStreet) -- I write this from one of the most vibrant environments in the world -- Wall Street. Right across from the New York Stock Exchange. At TheStreet, if I may speak for an entire organization, we like to call the TST headquarters a key hub in Cramerica.

The original reason for my journey no longer exists.

I was supposed to do an on-camera interview with Pandora (P) co-founder and Chief Strategy Officer Tim Westergren, but, instead, the company opted to connect me with Westergren via telephone Thursday morning.

Readers, particularly those who follow me on Twitter and saw me promote the Westergren interview, deserve an explanation.

Long story, short -- Westergren and I had been communicating via email. Together, we hatched the idea to do an interview on leadership in perpetual startups such as Pandora.

I let Pandora know that I would be asking about two crucial and very topical issues as part of my time with Westergren -- royalties and the competitive threat from Apple (AAPL). Everything was a go.

But then both the royalty story and competitive threat angle blew up with a Westergren blog post and Microsoft's (MSFT) xBox Music announcement.

The interplay of those two factors shifted the interview's focus from the original discussion to royalties and competition. As a result, Pandora opted to cancel and shift to a phone interview.

To be fair, Pandora told me they wanted the change simply because of the move away from the originally agreed upon topic, not because of the sensitive content. While the folks at Pandora assured me they're insistence on the phone interview was simply because of the change in topic, it's hard for me to believe the new emphasis on royalties didn't have something to do with it. But whatever the cause, that decision led me to pause and reflect on my bullishness.

Here's my take.

Westergren created issues for Pandora when he decided to run the above-linked blog post. This is the widely publicized one where Pandora discloses how much money it pays individual artists.

Pandora claims it pays musicians you've never heard of up to $100,000 a year, while the company noted that it sends annual Pandora-generated income of over $1 million to the likes of Coldplay and Wiz Khalifa and nearly $3 million to Drake and Lil Wayne.

Stock quotes in this article: P 

Select the service that is right for you!

COMPARE ALL SERVICES
Action Alerts PLUS
Try it NOW

Jim Cramer and Stephanie Link actively manage a real portfolio and reveal their money management tactics while giving advanced notice before every trade.

Product Features:
  • $2.5+ million portfolio
  • Large-cap and dividend focus
  • Intraday trade alerts from Cramer
  • Weekly roundups
TheStreet Quant Ratings
Try it NOW
Only $49.95/yr

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
  • Upgrade/downgrade alerts
Stocks Under $10
Try it NOW

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

Product Features:
  • Model portfolio
  • Stocks trading below $10
  • Intraday trade alerts
  • Weekly roundups
Dividend Stock Advisor
Try it NOW

Jim Cramer's protege, David Peltier, identifies the best of breed dividend stocks that will pay a reliable AND significant income stream.

Product Features:
  • 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 Pro
Try it NOW

All of Real Money, plus 15 more of Wall Street's sharpest minds delivering actionable trading ideas, a comprehensive look at the market, and fundamental and technical analysis.

Product Features:
  • Real Money + Doug Kass Plus 15 more Wall Street Pros
  • Intraday commentary & news
  • Ultra-actionable trading ideas
Options Profits
Try it NOW

Our options trading pros provide daily market commentary and over 100 monthly option trading ideas and strategies to help you become a well-seasoned trader.

Product Features:
  • 100+ monthly options trading ideas
  • Actionable options commentary & news
  • Real-time trading community
  • Options TV
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.
DOW 16,493.24 -8.41 -0.05%
S&P 500 1,877.60 +2.21 0.12%
NASDAQ 4,136.80 +9.8330 0.24%

Brokerage Partners

Rates from Bankrate.com

  • Mortgage
  • Credit Cards
  • Auto
Advertising Partners

Free Newsletters from TheStreet

My Subscriptions:

After the Bell

Before the Bell

Booyah! Newsletter

Midday Bell

TheStreet Top 10 Stories

Winners & Losers

Register for Newsletters
Top Rated Stocks Top Rated Funds Top Rated ETFs