Even if the company reports solid earnings on December 4 -- and I think it will -- I would hesitate to buy the optimism. The second Apple actually does a competitor product -- and my sources are telling me it's only a matter of time -- the stock will get hammered. It doesn't matter that Apple's service will not have an impact on Pandora. Perception will drive the stock down . . . again.
And, of course, there's constant uncertainty vis-a-vis the royalty situation and the Internet Radio Fairness Act that's making its way through Congress. As I explained in the terrible news for Pandora article, even if Tim Westergren's argument is correct -- and I think it is -- Pandora cannot win a public relations battle with a diverse cross-section of the world's biggest recording artists and their powerful music labels.
--Written by Rocco Pendola in Santa Monica, Calif.
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 + 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