This Day On The Street
Continue to site
ADVERTISEMENT
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 Upgrade Can't Cover the Sour Notes

Apple (AAPL - Get Report) has also entered the picture with its iTunes Radio. Other competitors, like Rdio, are smaller players but can't be counted out of the running.

While this competition has heated up in recent months, TheStreet's Rocco Pendola in recent articles has argued that Pandora is stuck in its thinking, particularly with regard to potential uses of its trove of user and song data. In Pendola's opinion, the company should have a major push to marry record labels and artists with potential audiences, facilitating tours and shows. He also noted that recent moves by management seem more intent on preserving rather than growing the company's mission. Those moves include hiring CEO Brian McAndrews.

As Pendola related, McAndrews was given a private office, counter to the company's longstanding "open-office" policy. The symbolism of the change, suddenly deciding that the CEO needs to be isolated from his staff, implies that his mission (the new mission of the company) and the mission of the rank-and-file (the old mission of the company) are not entirely in sync.

Still Wedbush makes a valid point: Based on available metrics and a projected net worth of the company, the stock price is undervalued. Significantly, despite all the positive numbers the report cites, Wedbush didn't raise its price target for the stock, but left it at $35. That makes Pandora good for a buy, certainly, but whether that's a long-term proposition is another story.

Must Read: Cloud Pricing Wars: Google, Microsoft Have Nothing on Dropbox

The company's current leadership situation is certainly confusing. Followers have the sense that McAndrews was brought in for a specific purpose, but that purpose is shrouded, a major unknown. 

-- Written by Carlton Wilkinson in New York 

2 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
Options Profits

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

Product Features:
  • Actionable options commentary and news
  • Real-time trading community
SYM TRADE IT LAST %CHG
AAPL $123.01 -0.30%
P $17.01 1.10%
GOOG $627.34 -0.11%
FB $95.90 0.64%
TSLA $265.54 0.27%

Markets

Chart of I:DJI
DOW 17,733.65 +103.38 0.59%
S&P 500 2,106.18 +12.93 0.62%
NASDAQ 5,100.5090 +11.3030 0.22%

Free Reports

Top Rated Stocks Top Rated Funds Top Rated ETFs