NEW YORK (TheStreet) -- Pandora Media (P) stock is increasing by 4.92% to $13.87 in late morning trading on Wednesday, after the music streaming service announced a new development in its copyright case.
The Copyright Royalty Board is making a decision about Pandora's rates for the period of 2016-2020.
The Register of Copyrights was asked by the board whether rates and terms could differ for licensors, or whether royalty rates could differ based on the record company that owns the recordings.
The register concluded that she could not offer an opinion about the differentiated rates because it was not properly referred to the Copyright Office.
"The Register further stated that because all participants in the Web IV proceeding had assumed a non-differentiated rate structure for licensors, that is the only reasonable outcome in the Web IV proceeding," Pandora said in a statement.
The board is expected to make its decision about rates in mid-December.
"Pandora supports a uniform rate structure for all musicians," said Dave Grimaldi, Pandora's director of public affairs, in a statement. "We look forward to the certainty the CRB's December decision will bring to the music industry, particularly as Pandora continues to improve our partnerships with music makers."
Separately, TheStreet Ratings team rates PANDORA MEDIA INC as a Sell with a ratings score of D+. TheStreet Ratings Team has this to say about their recommendation:
We rate PANDORA MEDIA INC (P) a SELL. This is driven by a number of negative factors, which we believe should have a greater impact than any strengths, and could make it more difficult for investors to achieve positive results compared to most of the stocks we cover. The company's weaknesses can be seen in multiple areas, such as its deteriorating net income and generally disappointing historical performance in the stock itself.
Separately, Highlights from the analysis by TheStreet Ratings Team goes as follows:
- The company, on the basis of change in net income from the same quarter one year ago, has significantly underperformed when compared to that of the S&P 500 and the Internet Software & Services industry. The net income has significantly decreased by 4143.4% when compared to the same quarter one year ago, falling from -$2.03 million to -$85.93 million.
- Despite any intermediate fluctuations, we have only bad news to report on this stock's performance over the last year: it has tumbled by 35.89%, worse than the S&P 500's performance. Consistent with the plunge in the stock price, the company's earnings per share are down 3900.00% compared to the year-earlier quarter. Naturally, the overall market trend is bound to be a significant factor. However, in one sense, the stock's sharp decline last year is a positive for future investors, making it cheaper (in proportion to its earnings over the past year) than most other stocks in its industry. But due to other concerns, we feel the stock is still not a good buy right now.
- PANDORA MEDIA INC has experienced a steep decline in earnings per share in the most recent quarter in comparison to its performance from the same quarter a year ago. This year, the market expects an improvement in earnings ($0.10 versus -$0.15).
- Compared to other companies in the Internet Software & Services industry and the overall market, PANDORA MEDIA INC's return on equity significantly trails that of both the industry average and the S&P 500.
- The gross profit margin for PANDORA MEDIA INC is rather high; currently it is at 53.47%. It has increased from the same quarter the previous year. Regardless of the strong results of the gross profit margin, the net profit margin of -27.58% is in-line with the industry average.
- You can view the full analysis from the report here: P
Any reference to TheStreet Ratings and its underlying recommendation does not reflect the opinion of Jim Cramer, TheStreet or any of its contributors.