NEW YORK (TheStreet) -- Shares of Pandora Media (P) are higher by 4.87% to $9.90 on heavy trading volume on Friday morning, after the music streaming service reported a narrower than expected loss and a growth in revenue for the 2016 first quarter.

The company posted a net loss of $48.3 million, or a loss of 23 cents per share on sales of $297.3 million for the three month period ended March 31. Pandora released its latest financial report after the close on Thursday.

Revenue for the quarter grew by 29% year over year.

Analysts surveyed by Thomson Reuters had been expecting a loss of 31 cents per share on revenue of $286.49 million for the 2016 first quarter.

"This was a really strong start to the year, and I see clear signs of momentum across our business," Tim Westergren, Pandora's founder and CEO, said in a statement. "Our team is rapidly bringing Pandora's audacious strategy to life, fundamentally changing how listeners discover and enjoy music while helping artists build sustainable careers."

Pandora raised its full year revenue forecast slightly to a range between $1.41 billion and $1.43 billion. Previously, the company had guided for full year revenue of $1.40 billion to $1.42 billion.

Separately, TheStreet Ratings has set a "sell" rating and a score of D on Pandora Media stock. This is driven by several weaknesses, which TheStreet Ratings believes 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 it covers.

The company's weaknesses can be seen in multiple areas, such as its deteriorating net income, disappointing return on equity, weak operating cash flow, generally disappointing historical performance in the stock itself and feeble growth in its earnings per share.

TheStreet Ratings objectively rated this stock according to its "risk-adjusted" total return prospect over a 12-month investment horizon. Not based on the news in any given day, the rating may differ from Jim Cramer's view or that of this articles's author.

You can view the full analysis from the report here: P