Pandora's drop is consistent with other high-momentum stocks, due to investor fears that the extended government shutdown augur badly for an agreement to a government debt.
Pandora shares have also been adversely affected by Bloomberg's Tuesday report that Apple (AAPL) is planning to launch iTunes Radio in overseas markets including the U.K., Canada and Oceania by early 2014. Pandora currently operates in the U.S., Australia and New Zealand, albeit with broadcasting restrictions depending on each country's laws.
Pandora reports it had 72.7 million active listeners in September, a 25% increase from the same period a year earlier. Apple said within six days of its launch last month iTunes Radio had attracted 11 million unique listeners.
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 some concerns, 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, disappointing return on equity, weak operating cash flow and feeble growth in its earnings per share."
Highlights from the analysis by TheStreet Ratings Team goes as follows: