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 Popped, But Will It Crash Again?

NEW YORK ( TheStreet) -- Just like TheStreet, Pandora (P - Get Report) will be at the Consumer Electronics Show (CES) in Las Vegas this week.

Last year at CES, Samsung introduced a refrigerator -- a $3,500 refrigerator -- that runs several popular apps, including Pandora. Aside from Netflix (NFLX - Get Report), you cannot find a company that achieved ubiquity faster.

Both companies secured placement on dozens of consumer electronics, from streaming players to remote controls and beyond.

In the auto, only Sirius XM (SIRI - Get Report) satellite radio -- now in an impressive 42 brands -- saturates the motor vehicle more.

As of last check, with 23 automotive partnerships, Pandora is actually ramping up its presence at a faster historical clip.

At Pandora, listener hours -- particularly on mobile -- continue to increase. Same with revenue. Unabated. Yet the stock gyrates more than most other major names. Look at the volatility. You just can't own this thing -- or can you?

(Photo Credit: Samsung.com)

Don't blame Pandora's business model for the crappy stock. Pandora has been up against it vis-a-vis content acquisition costs since before its IPO. If the issue really spooked investors, the stock would've gone down on big music royalty-related news and stayed down. Instead, it regularly surges, only to violently crash. Ahead of earnings, it's on the upswing, but don't trust it. P Chart P data by YCharts

While Pandora was likely cautious on its last report -- a beat for the November, December, January quarter would not surprise me -- its stock does not trade on the basis of a business outlook. No doubt, it dropped on disappointing guidance with its most recent report, but, again, it refuses to stay down. Ultimately, it trades on noise.

Almost every time a competing service gets announced the stock takes a hit. Samsung announced one. Pandora went down. Lowly Nokia (NOK) and Research in Motion (RIMM) came to with feeble offerings. Pandora dropped.

Then, of course, there's Richard Greenspare of BTIG Media who is due any day now for a cautious mention on P (that's what Briefing.com always calls them). With guys like that unfortunate parts of the conversation, you can never know what to expect.

Rumors of a streaming radio product from Apple (AAPL - Get Report) have hit Pandora harder than any other. While I don't see the sense in Apple getting into Pandora's business -- it's better off seeking a partnership to integrate Pandora or another existing service into iTunes -- a credible person or two tells me it's only "a matter of time" before it happens.
1 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
Dividend Stock Advisor

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
  • Updates with exact steps to take - BUY, HOLD, SELL
Trifecta Stocks

Every recommendation goes through 3 layers of intense scrutiny—quantitative, fundamental and technical analysis—to maximize profit potential and minimize risk.

Product Features:
  • Model Portfolio
  • Intra Day Trade alerts
  • Access to Quant Ratings
Options Profits

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

Product Features:
  • Actionable options commentary and news
  • Real-time trading community
SYM TRADE IT LAST %CHG
AAPL $118.44 -2.36%
NFLX $112.56 -1.53%
P $17.20 -1.83%
SIRI $3.96 0.00%
FB $94.14 0.14%

Markets

Chart of I:DJI
DOW 17,598.20 -91.66 -0.52%
S&P 500 2,098.04 -5.80 -0.28%
NASDAQ 5,115.3820 -12.8990 -0.25%

Free Reports

Top Rated Stocks Top Rated Funds Top Rated ETFs