Pandora Popped, But Will It Crash Again?

NEW YORK ( TheStreet) -- Just like TheStreet, Pandora ( P) will be at the Consumer Electronics Show (CES) in Las Vegas this week.

Last year at CES, Samsung introduced a refrigerator -- a $3,500 refrigerator -- that runs several popular apps, including Pandora. Aside from Netflix ( NFLX), you cannot find a company that achieved ubiquity faster.

Both companies secured placement on dozens of consumer electronics, from streaming players to remote controls and beyond.

In the auto, only Sirius XM ( SIRI) satellite radio -- now in an impressive 42 brands -- saturates the motor vehicle more.

As of last check, with 23 automotive partnerships, Pandora is actually ramping up its presence at a faster historical clip.

At Pandora, listener hours -- particularly on mobile -- continue to increase. Same with revenue. Unabated. Yet the stock gyrates more than most other major names. Look at the volatility. You just can't own this thing -- or can you?

(Photo Credit: Samsung.com)

Don't blame Pandora's business model for the crappy stock. Pandora has been up against it vis-a-vis content acquisition costs since before its IPO. If the issue really spooked investors, the stock would've gone down on big music royalty-related news and stayed down. Instead, it regularly surges, only to violently crash. Ahead of earnings, it's on the upswing, but don't trust it. P Chart P data by YCharts

While Pandora was likely cautious on its last report -- a beat for the November, December, January quarter would not surprise me -- its stock does not trade on the basis of a business outlook. No doubt, it dropped on disappointing guidance with its most recent report, but, again, it refuses to stay down. Ultimately, it trades on noise.

Almost every time a competing service gets announced the stock takes a hit. Samsung announced one. Pandora went down. Lowly Nokia ( NOK) and Research in Motion ( RIMM) came to with feeble offerings. Pandora dropped.

Then, of course, there's Richard Greenspare of BTIG Media who is due any day now for a cautious mention on P (that's what Briefing.com always calls them). With guys like that unfortunate parts of the conversation, you can never know what to expect.

Rumors of a streaming radio product from Apple ( AAPL) have hit Pandora harder than any other. While I don't see the sense in Apple getting into Pandora's business -- it's better off seeking a partnership to integrate Pandora or another existing service into iTunes -- a credible person or two tells me it's only "a matter of time" before it happens.

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