Pandora Media (NYSE:P)

CAPS Rating: 1 out of 5

Recs

1
Player Avatar TMFnoceilings (94.95) Submitted: 10/5/2012 4:08:44 PM : Underperform Start Price: $10.33 P Score: +16.74

Pandora makes an outstanding product...nothing speaks more to that than its constantly growing listener base. Unfortunately, the economics of its business are just too ugly to ignore--when you're spending almost 60% of your revenue just to pay for the songs that give you the opportunity to air the adds that earn you some revenue, it's never a pretty picture. Not to mention: revenue per thousand listening hours (RPM) is dropping fast thanks to the mobile switch, and there are more than a few deep-pocketed competitors ready to step in should Pandora finagle itself more attractive royalty fees at some point in the future. Again, love the service...but not the stock.

Member Avatar TMFSpiffyPop (99.40) Submitted: 10/12/2012 11:13:28 AM
Recs: 0

Okay, I'm joining you on this. --DG

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