If you own @pandora_radio stock right now youre nuts. You might as well just book a vacation at a bed and breakfast run by the Taliban.Rocco Pendola (@Rocco_TheStreet) April 24, 2014
Here's the deal ... in as plain, simple and straightforward terms I can come up with.
A couple of years ago when I was bullish Pandora stock in the teens and high single digits, very few people understood the company's core business. They couldn't wrap their heads around the notion of Pandora redefining radio with a focus on personalization and discovery. This combo fuels Pandora's pitch of highly-targeted advertising directly -- and, now, through agencies -- to the folks who have historically bought traditional radio.
The second Pandora executives explained the model to me, I was sold. Obvious no brainer.
Over the last year or so, investors started to catch on. Wall Street became bullish, almost to an analyst. And the stock flew on an understanding of what Pandora was accomplishing with advertising, not to mention the company's ability to beat back every competitive threat that came its way.
But that storyline's no longer sexy. And it shouldn't be.
Pandora believes all it needs to do to remain Internet radio's leader is improve the listener platform and continue to poach advertising dollars from broadcast radio. The company remains hyper focused on that strategy and that strategy alone. This misguided stubbornness will mark the death of Pandora.