Pandora's Management needs to act quickly
I don't like stocks that skyrocket upward 1 billion percent OH MY GOD without having produced a single pennies worth of profit.
I am not the Bandwagon investor that launches money at a high flying stock and doesn't care to check the balance sheet. Throw caution to the wind, who cares about profits, the company has HUGE GROWTH in other areas!!!
A lot of stocks function like that. The market is forward thinking so frustratingly it leaves people like me with their mouthes open.
Until Pandora starts producing profit, it is impossible to evaluate the stock based on EPS. You end up having to look at "listener hours" and "subscriber numbers" and so on. Not even Revenue makes any sense with this stock as a way to evaluate it because you are left wondering how in the world is Pandora going to monetize their business given they have a ridiculously large amount of listeners?
TOO MUCH UNCERTAINTY pressures a share price to the bottom of the ocean!
I think Pandora desperately needs to change their business model....Is Advertisement + a paultry sum of subscribers + OOPS they already had to raise their subscription fee = Success story here?
Maybe... I am not smart enough to know whether it is or not.... But, I am smart enough to know WALL STREET doesn't think it is. They are right to be skeptical.... There just isn't any movement among Pandora management to change their business model at any large degree to monetize their business enough to start producing profit.
Sirius XM got out of trouble thanks to their successful model of offering free subscription trials along with a free Sirius XM radio installed in a NEW car you buy. Now they are doing that with Pre-Owned cars. That is what a BIG Business model change looks like.
What does PANDORA need to do? They should think WAAAAAAAAAAY outside the box with the following ideas I have thought about in recent days:
1) PANDORA - College Channel: There are a lot of colleges and universities whose radio stations can not be heard outside of the college campus.... They can not get access to AM/FM and etc. Why not offer up a few PANDORA channels out to Universities throughout the United States?
College / University radio stations do not possess a whole lot of money, but I am willing to bet they would have the money to pay for the privelige of having their station heard on PANDORA.
Now you have NEWS + TALK + INDIE MUSIC + etc. all of a sudden and you are getting paid to have it.
2) PANDORA -VIDEO GAME Partnerships - Log onto Pandora's website and you get the following:
You get listen to Pandora in your Car, in your home, on your Mobile Phone, on a Train, On Bus, Sam I am."
But, what about in a video game?
Ok... Stick with me here... Why can't I listen to my favorite Pandora channels while playing FORZA MOTORSPORT ? HALO? CALL OF DUTY???? ASSASSIN'S CREED???? Maybe, I am not such a big fan of in-game music and would much rather run the Nine Inch Nails Pandora Channel instead?
Imagine... You click a button....Search for your favorite Artist...Get a Pandora channel... Continue playing...All within the video game....
Can't do that if PANDORA sits there twiddling their thumbs like a bunch of scarecrows too scared to do anything drastic....anything creative... What the heck is stopping you from Getting yourself in the XBOX / PLAYSTATION UNIVERSE like never before??? Seriously????
All GRAND THEFT AUTO ever needed was PANDORA!!! Think about it???
Psssh....And this is coming from a Sirius XM subscriber / investor telling PANDORA to get a clue.
If they don't change their business model QUICKLY then they will continue to suffer losses....
3) EMBEDDING PANDORA - Right now PANDORA is just a separate application you download from the APP store.... It is not Embedded into anything..... Because, Management isn't even trying.