NEW YORK (TheStreet) -- Pandora Media (P - Get Report) fell in afternoon trading on Thursday despite the company's announcement that listener hours for its streaming-radio service rose 14% to 1.71 billion in March 2014 from 1.49 billion in March 2013.
But that increase also came with the announcement that the average user count for the three months ended in March remained flat at 74.7 million. B. Riley believes this news discouraged investors but reiterated its "buy" rating and $38 target price.
"We believe investors were happy with +13.2% M/M Listener hour growth (versus the -4.4% we saw from January to February), but were disappointed with flat M/M Active user growth," the firm wrote in a research note.
The stock closed down 5.06% to $29.85, a $1.59 decrease from its previous close of $31.44, at the close of trading on Thursday. The stock had a range of $29.62 to $33.70 for the day and a one-year range of $12.66 to $40.44. More than 18.4 million shares changed hands, well above the average volume of 8,521,070.
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