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
TheStreet Open House

Here's Why Pandora's Crashing

NEW YORK (TheStreet) -- Don't say I didn't warn you.

You see the timestamp on that Tweet. Since that Tweet the stock's down roughly 16%.

And, as we speak, Pandora's (P) struggling to maintain $30.

Because it's faster to speak in Tweets as the market moves, here's my take on what's up ...

In the shell of a nut, Westergren made the wrong choice going with Brian McAndrews to replace Joe Kennedy as Pandora CEO. McAndrews and other recent hires do not understand Pandora's business and, more importantly, its culture. Plus, and even more importantly, they, guided by Westergren's unfortunate stubbornness, have not set the proper course for Pandora's evolution.

They're making all the wrong moves (or not making moves at all) with respect to data and dealing with content costs.

The big money's starting to sniff out what I've been warning you about for the past couple months -- all is not well at Pandora. Internally, nobody wants to talk, but, as frustration builds, I expect people will chirp. At some point, they'll feel that going on the record, even if anonymously, about what's wrong is actually the right thing to do to salvage Pandora's mismanaged business. 

And it is being mismanaged. I've never seen a company go south so abruptly. 

For more color on these criticisms, see Pandora Thinks We're All Total Idiots ... and Sell Pandora: It's About To Become a Thing of the Past.

In short, get out while you can. This thing has ways to go to the downside. $20s for certain. And, without meaningful intervention, the teens would not surprise me.

In fact, I have a new theme song for Pandora ... it's by the great Taylor Swift ... 

--Written by Rocco Pendola in Santa Monica, Calif.

Disclosure: TheStreet's editorial policy prohibits staff editors, reporters and analysts from holding positions in any individual stocks. Rocco Pendola is a columnist for TheStreet. Whenever possible, Pendola uses hockey, Springsteen or Southern California references in his work. He lives in Santa Monica.

Select the service that is right for you!

COMPARE ALL SERVICES
Action Alerts PLUS
Try it NOW

Jim Cramer and Stephanie Link actively manage a real portfolio and reveal their money management tactics while giving advanced notice before every trade.

Product Features:
  • $2.5+ million portfolio
  • Large-cap and dividend focus
  • Intraday trade alerts from Cramer
  • Weekly roundups
TheStreet Quant Ratings
Try it NOW
Only $49.95/yr

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
  • Upgrade/downgrade alerts
Stocks Under $10
Try it NOW

David Peltier, uncovers low dollar stocks with extraordinary upside potential that are flying under Wall Street's radar.

Product Features:
  • Model portfolio
  • Stocks trading below $10
  • Intraday trade alerts
  • Weekly roundups
Dividend Stock Advisor
Try it NOW

Jim Cramer's protege, 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
  • Alerts when market news affect the portfolio
  • Bi-weekly updates with exact steps to take - BUY, HOLD, SELL
Real Money Pro
Try it NOW

All of Real Money, plus 15 more of Wall Street's sharpest minds delivering actionable trading ideas, a comprehensive look at the market, and fundamental and technical analysis.

Product Features:
  • Real Money + Doug Kass Plus 15 more Wall Street Pros
  • Intraday commentary & news
  • Ultra-actionable trading ideas
Options Profits
Try it NOW

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

Product Features:
  • 100+ monthly options trading ideas
  • Actionable options commentary & news
  • Real-time trading community
  • Options TV
To begin commenting right away, you can log in below using your Disqus, Facebook, Twitter, OpenID or Yahoo login credentials. Alternatively, you can post a comment as a "guest" just by entering an email address. Your use of the commenting tool is subject to multiple terms of service/use and privacy policies - see here for more details.
Submit an article to us!
DOW 17,291.61 +25.62 0.15%
S&P 500 2,010.02 -1.34 -0.07%
NASDAQ 4,573.8680 -19.5570 -0.43%

Brokerage Partners

Rates from Bankrate.com

  • Mortgage
  • Credit Cards
  • Auto

Free Newsletters from TheStreet

My Subscriptions:

After the Bell

Before the Bell

Booyah! Newsletter

Midday Bell

TheStreet Top 10 Stories

Winners & Losers

Register for Newsletters
Top Rated Stocks Top Rated Funds Top Rated ETFs