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

Apple May Write Pandora's Last Song

On the other hand, competition is nothing new for Pandora. As noted, the company has performed impressively and shows that it can log quarterly growth despite the constant comparisons to the likes of Sirius XM (SIRI). Although Sirius proves to have a more sustainable model with its dominant auto subscriptions, Pandora has acquired 7% of the radio market share and seems to be outgrowing Sirius.

However, once Apple enters the market, all bets are off -- and Kennedy understands this. And whether he acknowledges the threat of Apple now or later means nothing. In the meantime, Pandora will need to figure out how to deal with the rising content costs and royalty payments that continue to eat away at its profits.

Bottom Line

It seems that Apple may once again do what it does best -- disrupt an existing market. Just the mere rumor that the company is planning to enter the music streaming business has caused a big stir.

Unfortunately for Pandora, the song seems to coming to an abrupt end. However, Google or Facebook could provide a refrain if either steps in and makes a bid for Pandora, as I anticipate will happen.

At the time of publication, the author was long AAPL.

This article is commentary by an independent contributor, separate from TheStreet's regular news coverage.

Richard Saintvilus is a private investor with an information technology and engineering background and has been investing and trading for over 15 years. He employs conservative strategies in assessing equities and appraising value while minimizing downside risk. His decisions are based in part on management, growth prospects, return on equity and price-to-earnings as well as macroeconomic factors. He is an investor who seeks opportunities whether on the long or short side and believes in changing positions as information changes.
2 of 2

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
Submit an article to us!
SYM TRADE IT LAST %CHG
AAPL $129.60 0.50%
P $17.98 2.40%
FB $78.88 -0.14%
GOOG $541.65 0.70%
TSLA $231.50 2.40%

Markets

DOW 18,089.28 +65.22 0.36%
S&P 500 2,117.23 +8.94 0.42%
NASDAQ 5,028.68 +23.2890 0.47%

Partners Compare Online Brokers

Free Reports

Top Rated Stocks Top Rated Funds Top Rated ETFs