NEW YORK (TheStreet) -- Shares of Pandora Media Inc. (P) are lower by 1.43% to $16.51 in mid-afternoon trading on Tuesday, as Google (GOOGL) - Get Report launches a free, ad-supported version of its $9.99 per month Google Play Music streaming service, designed to rival Apple Music (AAPL) - Get Report.

The free service, which is available now, is designed to give artists an additional means of earning revenue and ultimately to bring in more users for its pay subscription service.

"We hope you'll enjoy it so much that you'll consider subscribing to Google Play Music to play without ads, take your music offline, create your own playlists, and listen to any of the 30 million songs in our library on any device and as much as you'd like," Google said in a blog post announcing the free service.

Pandora stock took a hit when Apple announced its music streaming service earlier this month. Apple Music will launch on June 30.

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Shares of Google are up by 0.80% to $564.18 and shares of Apple are lower by 0.24% to $127.30 this afternoon.

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 few notable weaknesses, 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. Among the areas we feel are negative, one of the most important has been generally deteriorating net income."

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 66.8% when compared to the same quarter one year ago, falling from -$28.93 million to -$48.26 million.
  • 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 ($0.19 versus -$0.15).
  • Despite any intermediate fluctuations, we have only bad news to report on this stock's performance over the last year: it has tumbled by 38.65%, worse than the S&P 500's performance. Consistent with the plunge in the stock price, the company's earnings per share are down 64.28% compared to the year-earlier quarter.
  • 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.
  • 40.24% is the gross profit margin for PANDORA MEDIA INC which we consider to be strong. 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 -20.91% is in-line with the industry average.
  • You can view the full analysis from the report here: P Ratings Report