The psychology around this stock, and stocks in general, baffles me.
If you were unwilling to buy P at $8 and in the teens when I was hyper-bullish, why would you even entertain the thought up near $38?
As I argue in articles such as Sell Pandora: Stock Could Crash on Bad Strategic Investments and Haters Have Reason to Trash Pandora, the company says it has embraced the Amazon.com (AMZN) way (and I initially bought it), but, on second (and third) thought it's not talking the talk.
The AMZN way posits that you seize the massive opportunity that lies ahead of you -- that you created for yourself -- by all means necessary and possible. That's not what Pandora's doing right now.
It's reinvesting primarily in its advertising sales business, leaving the opportunity in data and the live concert business largely on the table. If Pandora was truly following the AMZN way it would be leveraging these other areas to create new lines of revenue that can help serve its core. It's simply not doing that, to my knowledge, at any meaningful scale.
It's one thing to reinvest aggressively back into the business. But you have to reinvest into the right areas at the proper proportions. I don't see that happening at Pandora.
As it stands, don't expect future growth to run commensurate with reinvestment. Put another way, by continuing to focus on advertising, at the expense of data and, to a lesser extent, the live concert space, Pandora will take one step forward (growth) and two steps back (reinvestment). It will chase its tail for a while, making it difficult to justify the risk association with capturing further, tenuous upside in an already maxed-out stock.