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

Pandora Crushes $30: What Happened, What's Next?

Video rant, point-by-point color and how to play the stock now on Page Two.

NEW YORK ( TheStreet) -- If I ran a financial media organization, including ones close to my heart such as TheStreet and CNBC, I would immediately place a moratorium on Wall Street analysts as guests.

Given how frequently these guys show up on myriad financial media properties that's an unpopular, even risky thing for me to say. But, I'm not here to "network" or make friends. I'm here to tell it like it is.

Ultimately, I would be more than happy to go with a very select approved list of Wall Street folks as guests. But, beyond that, I will never understand the inclination to depend on these guys, given that a) the investing public largely distrusts them; b) they're, generally, boring as hell and c) they build bull and bear cases and make buy or sell recommendations after a company's narrative has already become painfully obvious.

Case in point: How many Wall Street analysts, in January 2012, we're saying Pandora (P - Get Report) Cracked the Code?

How many, during the same timeframe, were drilling into and demystifying the core that makes Pandora tick:
My Pandora bull case centers, as it has for months, on the company's ability to sell targeted, mutli-platform advertising at the national and local levels. Having worked closely with terrestrial radio sales departments over the years, I can tell you that they do their best work selling stations and individual shows that own the same and similar attributes as Pandora.
After you consider what Pandora can put into the hands of its growing sales force when it hits the street, it's easy to see how the gig should be like shooting fish in a barrel for just above-average salespeople, let alone good ones.

Even the Wall Street guys who deserve some credit, such as Doug Anmuth who raised his price target to $35 last week, present obvious cases far too reliant on quantitative metrics. I read his notes. And they don't sufficiently speak to the more important qualitative case investors need to know to better understand and make informed decisions on Pandora.

That's part of the problem on Wall Street, even when analysts get things right. They're mired in old models, while the rest of the world tends toward dealing with stocks on the basis of the "story." Focusing on the story -- or a company's narrative -- came into vogue somewhere in the past five years or so. And with good reason.

Who in the world would put money into so many of the market's top performers on the basis of numbers alone? (AMZN). Netflix (NFLX). There would be little, if any, demand for shares of these companies if we lived and died by the numbers. Investors buy the story. They buy the vision. And I don't blame them.
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
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 $7.99 0.25%
AAPL $95.49 0.53%
FB $101.89 2.40%
GOOG $691.14 1.90%
TSLA $150.03 1.20%


Chart of I:DJI
DOW 16,084.98 +70.60 0.44%
S&P 500 1,871.79 +19.58 1.06%
NASDAQ 4,341.4630 +72.70 1.70%

Free Reports

Top Rated Stocks Top Rated Funds Top Rated ETFs