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

The Amazon Way at Pandora

NEW YORK (TheStreet) -- Earlier this week on TheStreet in Twitter's Beating Pandora At What Should Be Its Own Game and Wall Must Demand Answers From Pandora ... Now, I discussed the Pandora (P - Get Report) issue everybody should be, but nobody is talking about -- data.

But that's OK.

When I was busy writing about the stellar advertising business Pandora was building (and continues to build), there was scant discussion of it from others. Or it was doubted and downplayed. Now, that ad business has a real chance at driving $1 billion in sales, or close to it, for Pandora in 2014 (I don't care about the guidance Pandora gave).

This company is on fire and nothing other than itself can stop it.

Must Read: Jim Cramer's 6 Stocks in 60 Seconds: PCAR VALE WFM BWLD GOOG DATA (Update 1)

The word "data" only came up, in some form, seven times during Pandora's earnings conference call. Unfortunately, none of the mentions dealt with what I discuss in the two above-linked articles.

The only reference to "data" worth texting home about dropped in this exchange between an analyst and Pandora CEO Brian McAndrews:

Heath Terry, Goldman Sachs: Brian, can you give us a sense, when you look at the opportunity at Pandora and particularly when you were coming on ... how did you think about where Pandora's advertising technology sat, how much of an opportunity that represented, and what your initial priorities were in terms of leveraging the data there?
McAndrews: ... And I think leveraging data, we're beginning to do that already. We target in over 100 different ways, different combinations of variables that we have ...
Right now, with zipcode, we have great location data, but over time, companies will look more at geolocation, and thats an area we can look at over time ...
So I think there's a lot of headroom there. These things take a while, but again, weve been making investments and continue to make investments to take advantage of those kinds of things.

If you've been reading me the last few years, you realize this is 2012, 2013 stuff. We already know all of this.

So, again, a Wall Street analyst asks a worthless question. What else is new?

What analysts should be asking is when will we see Pandora use its data in a meaningful way to do things other than targeted advertising. Of course, that business will continue grow and evolve into something more precise and sophisticated. That's exciting, however it's still Pandora 101.

What the company needs to do is turn big data into a revenue line separate from subscriptions and advertising. Everybody from bands to brands to record labels would pay handsomely for historical and real-time access to Pandora data.

I need to articulate, in practical terms, what this might look like as to illustrate the massiveness and urgency of the opportunity for Pandora. I'm on vacation next week so I'll be doing a lot of thinking about how I can best relay my thoughts and where Pandora might be headed with data (outside of targeted advertising).

With that in mind, we look elsewhere. For now. Specifically at the inspiration for the headline of this article. Nothing I have heard on an earnings call has ever excited me as much as this did ... 

1 of 3

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
AMZN $671.32 -1.83%
P $8.68 -3.66%
AAPL $95.18 1.64%
FB $117.43 -0.96%
GOOG $692.36 -0.84%


Chart of I:DJI
DOW 17,750.91 -140.25 -0.78%
S&P 500 2,063.37 -18.06 -0.87%
NASDAQ 4,763.2240 -54.37 -1.13%

Free Reports

Top Rated Stocks Top Rated Funds Top Rated ETFs