This Day On The Street
Continue to site
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

A Pandora Blog Post You Must Read Right Now (Update 1)

Updated in the final paragraph to include positive analyst sentiment and Pandora's Wednesday stock action.

NEW YORK ( TheStreet) -- That's a Twitter exchange I had midday Wednesday. Thanks to "Fitz Hugh Ludlow" for passing on the information.

I didn't see the CNBC treatment of the story, but I hope it was more complete than everything else that has been done on the topic over the last year or so. In case, you don't know what we're talking about, allow me to refresh.

You have probably seen this headline or something like at some point in the last 24 hours or so:

Pandora Users Played David Lowery's Song a Million Times and All He Got Was $16.89

What have I been bitching about for months? Context. Media outlets pick up these Pandora (P - Get Report) tidbits and uncritically turn them into stories, but very few, if any, even huge music and tech publications provide the necessary context. Talk about irresponsibility and injustice.

But, I digress.

At his blog, theunderstatement, Michael DeGusta does an excellent job setting the record straight and putting Lowery, who is complaining about how much he made off of Cracker's hit "Low," in his place.

While I have not yet gone through DeGusta's numbers with a fine tooth comb, at a glance, they seem accurate, even if off by a percentage point here or there. I'm quite confident, however, that if there are errors, they do not detract from the must-see numbers or the must-read analysis DeGusta provides.

Chest bumps and fist pumps to DeGusta, who astutely states:
None of this means Pandora ought to pay less in royalties. On the contrary, it seems quite likely that others should be paying more. And perhaps the non-artists involved in the transaction shouldn't be taking 53% of the total for their services. But attacking Pandora with intentionally misleading statistics just undermines the credibility of the argument.

Bingo. The system's broken. That's not Pandora's fault, but, of course, there are moves Pandora can make to take the high road and move this whole chaotic conversation forward to a sound resolution.

Update: Despite Microsoft's (MSFT) entry into streaming Internet radio, Pandora shares held up today, likely on the back of DeGusta's rebuke of Lowery, but more so on positive notes from Wall Street brokerages Stifel and Cowen and Company. The firms, respectively, rate Pandora "buy" and "outperform" with price targets of $20 at Stifel and $22 at Cowen. Shares of P closed Wednesday's session up roughly 8% at $17.73. That's a 52-week closing high for the stock.

-- Written by Rocco Pendola in Santa Monica, Calif.
Rocco Pendola is TheStreet's Director of Social Media. Pendola's daily contributions to TheStreet frequently appear on CNBC and at various top online properties, such as Forbes.

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
Real Money

More than 30 investing pros with skin in the game give you actionable insight and investment ideas.

Product Features:
  • Access to Jim Cramer's daily blog
  • Intraday commentary and news
  • Real-time trading forums
Only $49.95
14-Days Free
14-Days Free
P $9.30 -0.43%
AAPL $92.84 -0.43%
FB $118.67 0.73%
GOOG $706.31 0.70%
TSLA $211.68 0.07%


Chart of I:DJI
DOW 17,651.43 -9.28 -0.05%
S&P 500 2,041.82 -8.81 -0.43%
NASDAQ 4,690.20 -26.8940 -0.57%

Free Reports

Top Rated Stocks Top Rated Funds Top Rated ETFs