Pandora Media earnings report august 30 2012 : Pandora Media Inc (P.N) reported better-than expected results on higher advertising revenue as more people listened to music on their mobile devices, and the company raised its full-year revenue outlook, Shares of the company rose 9 percent in after-hours trading.
Chief Executive Joe Kennedy said Pandora's advances in mobile was a bright spot in the quarter. Advertisers are spending more on Web and mobile platforms, he said in an interview with Reuters.
Pandora is also grabbing more market share: listener hours are up 80 percent year over year, and its share of people listening to radio in the U.S. increased to 6 percent from 3.5 percent in the same period a year ago. Its Internet radio share has increased to 72 percent.
Pandora competes against Clear Channel, Sirius XM Radio (SIRI.O) and Spotify.
Additionally, during the earnings conference call with analysts, Chief Financial Officer Steve Cakebread said he will be leaving the company later this year, and that he has no disputes with Pandora. The company hired executive search firm Heidrick & Struggles to help find Cakebread's replacement.
Shares of the online streaming music service rose to $10.98 in extended trade, after closing at $10.08 on Wednesday.
Pandora said its fiscal second-quarter revenue jumped 51 percent to $101.3 million, beating analysts' expectations of $100.94 million, according to Thomson Reuters I/B/E/S.
On a Non-GAAP basis, the company broke even, besting analysts' expectations of a loss of 3 cents per share.
The Oakland, California company, which is more than 10 years old, is being carefully watched as a new model for radio listening as more people use the Internet to stream music to their cars, home stereos and mobile devices.
Pandora is dipping into its coffers to aggressively build out a local sales force and its mobile applications since it largely depends on advertising revenue.
Total advertising revenue rose 53 percent to $89.4 million. Mobile revenue climbed 86 percent year-over-year to $59.2 million.
"I loved the user metrics given all the hullabaloo of all the competitors," said Laura Martin, an analyst with Needham & Co.
"The mobile revenue is a big deal," she said.
Pandora raised its full-year revenue forecast to a range of $425 million to $432 million from $420 million to $427 million.
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Showing posts with label Pandora. Show all posts
Showing posts with label Pandora. Show all posts
Thursday, August 30, 2012
Pandora Media stock rose august 30 2012
Pandora Media stock rose august 30 2012 : Shares of Pandora Media (P), the Internet radio operator, are one of the standout gainers in a weak market overall, rising $2.11, or 21%, to $12.19, following the company’s fiscal Q2 EPS beat last night, and better-than-expected outlook, followed by the announcement that its CFO plans to step down this year.
Pandora Media Inc (NYSE:P) among the gainers and the stock increased 18.35% to $11.93 on a traded volume of 20.06 million shares after the Company released second quarter results. Net loss was $5.4 million compared to $3.2 million in the prior year period. The loss per share was $0.03 compared to $0.04 in the prior year period. However, analysts expected the company to report a loss of $0.03 per share for the quarter. Revenues were $101.3 million versus $67 million in the prior year period. However, analysts expected revenues of $100.94 million. Costs and expenses for the quarter increased to $106.6 million. For the latest updates on the stock market, PRESS CTR + D or visit Stock Market Today For the latest updates PRESS CTR + D or visit Stock Market news Today
Pandora Media Inc (NYSE:P) among the gainers and the stock increased 18.35% to $11.93 on a traded volume of 20.06 million shares after the Company released second quarter results. Net loss was $5.4 million compared to $3.2 million in the prior year period. The loss per share was $0.03 compared to $0.04 in the prior year period. However, analysts expected the company to report a loss of $0.03 per share for the quarter. Revenues were $101.3 million versus $67 million in the prior year period. However, analysts expected revenues of $100.94 million. Costs and expenses for the quarter increased to $106.6 million. For the latest updates on the stock market, PRESS CTR + D or visit Stock Market Today For the latest updates PRESS CTR + D or visit Stock Market news Today
Tuesday, March 6, 2012
Pandora stock Analysts march 7 2012
Pandora stock Analysts march 7 2012, Pandora Media (NYSE: P) Earnings: Internet radio site Pandora, which went public June 15 last year, released fourth-quarter earnings after the bell today.Pandora (NYSE: P) fell more than 13% in after-hours trading Tuesday after releasing fourth-quarter earnings;
Pandora lost $8.18 million, or five cents a share, due to higher costs for advertising, marketing and content acquisition. Fourth-quarter revenue rose to $81.3 million from $47.6 million, a 71% year-over-year increase. Advertising revenue was $72.1 million, up 74% from the year before, and subscription and other revenue was up 51% to $9.2 million.
Analysts polled by Thomson Reuters expected a quarterly loss of two cents a share on revenue of $83 million. Pandora for the past two quarters has beat market expectations, until this earnings report.
Pandora's share price has surged 42% this year, but is still below the $16 IPO price.
Investors are cautious of Pandora's user growth, afraid it'll slow and halt the soaring stock. But active users last quarter reached a record 47 million, growing 62% year-over-year, and total listener hours increased 99%.
JPMorgan analyst Doug Anmuth, who has a $22 price target on Pandora, told The Street any user growth constraints will be short-term.
"We recognize that very strong growth in usage hours driven by mobile will continue to weigh on profitability in the near term, but in the meantime, we believe that Pandora will build significant market share and that the ability to monetize mobile hours will improve over the next few years and drop down to the bottom line," Anmuth wrote in a research note earlier this month.
Pandora got a 5.5% boost Monday after Stifel Nicolaus analyst Jordan Rohan raised his rating to "Buy" from "Hold" and gave the stock an $18 price target. Rohan said Pandora has become a "must have" application for mobile devices and is gearing up to make more money from mobile advertising.
Pandora has invested more in its ad sales force. It reported it has 5.5% of U.S. radio listener hours - up from 2.71% at the end of the previous year - which Rohan said will eventually fuel earnings growth with mobile advertising.
"While monetization lags audience in media, we believe Pandora will show vastly improved monetization this year," said Rohan.
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Pandora lost $8.18 million, or five cents a share, due to higher costs for advertising, marketing and content acquisition. Fourth-quarter revenue rose to $81.3 million from $47.6 million, a 71% year-over-year increase. Advertising revenue was $72.1 million, up 74% from the year before, and subscription and other revenue was up 51% to $9.2 million.
Analysts polled by Thomson Reuters expected a quarterly loss of two cents a share on revenue of $83 million. Pandora for the past two quarters has beat market expectations, until this earnings report.
Pandora's share price has surged 42% this year, but is still below the $16 IPO price.
Investors are cautious of Pandora's user growth, afraid it'll slow and halt the soaring stock. But active users last quarter reached a record 47 million, growing 62% year-over-year, and total listener hours increased 99%.
JPMorgan analyst Doug Anmuth, who has a $22 price target on Pandora, told The Street any user growth constraints will be short-term.
"We recognize that very strong growth in usage hours driven by mobile will continue to weigh on profitability in the near term, but in the meantime, we believe that Pandora will build significant market share and that the ability to monetize mobile hours will improve over the next few years and drop down to the bottom line," Anmuth wrote in a research note earlier this month.
Pandora got a 5.5% boost Monday after Stifel Nicolaus analyst Jordan Rohan raised his rating to "Buy" from "Hold" and gave the stock an $18 price target. Rohan said Pandora has become a "must have" application for mobile devices and is gearing up to make more money from mobile advertising.
Pandora has invested more in its ad sales force. It reported it has 5.5% of U.S. radio listener hours - up from 2.71% at the end of the previous year - which Rohan said will eventually fuel earnings growth with mobile advertising.
"While monetization lags audience in media, we believe Pandora will show vastly improved monetization this year," said Rohan.
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Wednesday, January 11, 2012
Pandora smartphones car audio systems deals with 16 car makers
Pandora smartphones car audio systems deals with 16 car makers : Pandora co-founder Tim Westergren doesn't drive much. "I'm a public transport guy," he said. But he does know that half of all radio listening is in cars and that's made the auto market the Internet radio company's major focus over the past year.
At the Consumer Electronics Show, Westergren announced deals with 16 car makers— from the first partner, Ford, to latest partner Kia— to incorporate Pandora into car dashboards or allow users to stream the service through their smartphones into car audio systems.
It's part of the firm's strategy to get its 125 million users to bring the service with them wherever they go and get them to listen even longer. The free service is so far supported by advertising, but ad revenues need to grow to to keep that model going, analysts say. Only 10 percent of customers use its premium paid service.
"It's one of those things where you have to build a big audience first and then advertising catches up," Westergren said in an interview at the company's suite at the Wynn Hotel here.
But he said many partners see Pandora as an essential brand for their products. The app was among the top downloaded on tablets like the iPad last year. Roku, an Internet television service, features Pandora as one of three buttons on its remote control for highly demanded apps.
On the show floor, Ford, Mercedes-Benz and Toyota were among firms touting the service on their dashboards. Not long ago, those car makers couldn't see the value in teaming up with the Web service.
The company follows satellite service XM Radio, which has benefited from car buyers seeking alternatives to regular radio broadcast. But it's also tied its fortunes tightly to the ups and downs of the auto market.
For this public transportation co-founder, could that also be a risk?
“We don't have a huge amount of hardware and per car costs like satellite radio does. Cars are just one piece. A big one, but just one piece for us,” Westergren said. For the latest updates on the stock market, visit Stock Market Today For the latest updates PRESS CTR + D or visit Stock Market news Today
At the Consumer Electronics Show, Westergren announced deals with 16 car makers— from the first partner, Ford, to latest partner Kia— to incorporate Pandora into car dashboards or allow users to stream the service through their smartphones into car audio systems.
It's part of the firm's strategy to get its 125 million users to bring the service with them wherever they go and get them to listen even longer. The free service is so far supported by advertising, but ad revenues need to grow to to keep that model going, analysts say. Only 10 percent of customers use its premium paid service.
"It's one of those things where you have to build a big audience first and then advertising catches up," Westergren said in an interview at the company's suite at the Wynn Hotel here.
But he said many partners see Pandora as an essential brand for their products. The app was among the top downloaded on tablets like the iPad last year. Roku, an Internet television service, features Pandora as one of three buttons on its remote control for highly demanded apps.
On the show floor, Ford, Mercedes-Benz and Toyota were among firms touting the service on their dashboards. Not long ago, those car makers couldn't see the value in teaming up with the Web service.
The company follows satellite service XM Radio, which has benefited from car buyers seeking alternatives to regular radio broadcast. But it's also tied its fortunes tightly to the ups and downs of the auto market.
For this public transportation co-founder, could that also be a risk?
“We don't have a huge amount of hardware and per car costs like satellite radio does. Cars are just one piece. A big one, but just one piece for us,” Westergren said. For the latest updates on the stock market, visit Stock Market Today For the latest updates PRESS CTR + D or visit Stock Market news Today
Thursday, August 25, 2011
Pandora stock prices and earning report estimated 25 august 2011
Pandora stock prices and earning report estimated 25 august 2011 ; Pandora(P) is scheduled to report earnings today. This will be the first earnings report from the Internet radio company after going public earlier this year.
Investors will eagerly look for information on Pandora's growth outlook and cost trends as it faces increasing competition from SiriusXM(SIRI) in the automobile market and Spotify, which recently launched its music service in the U.S. via Facebook.
Below we take a quick look at some of the key factors to watch.
Our price estimate for Pandora is near $10, which is around 20% below the market price.
Pandora's User Base Growth
This is the single biggest driver to Pandora's stock. The company currently only operates in the U.S. and registered around 80 million users in 2010. In July, the company crossed 100 million users and the looming challenge is whether or not Pandora can maintain this strong growth as its penetration levels in the U.S. rise. Content licensing deals are expensive though they help bring in new users while expanding internationally is no piece of cake. Both factors will weigh on the company's growth rate.
We currently forecast strong user growth and will wait for earnings to get a better view on Pandora's expansion plans to adjust our forecast. For the latest updates PRESS CTR + D or visit Stock Market news Today
Investors will eagerly look for information on Pandora's growth outlook and cost trends as it faces increasing competition from SiriusXM(SIRI) in the automobile market and Spotify, which recently launched its music service in the U.S. via Facebook.
Below we take a quick look at some of the key factors to watch.
Our price estimate for Pandora is near $10, which is around 20% below the market price.
Pandora's User Base Growth
This is the single biggest driver to Pandora's stock. The company currently only operates in the U.S. and registered around 80 million users in 2010. In July, the company crossed 100 million users and the looming challenge is whether or not Pandora can maintain this strong growth as its penetration levels in the U.S. rise. Content licensing deals are expensive though they help bring in new users while expanding internationally is no piece of cake. Both factors will weigh on the company's growth rate.
We currently forecast strong user growth and will wait for earnings to get a better view on Pandora's expansion plans to adjust our forecast. For the latest updates PRESS CTR + D or visit Stock Market news Today
Tuesday, August 2, 2011
Pandora shares prices loses its shine on the Copenhagen Stock Exchange august 2 2011
Pandora shares prices loses its shine on the Copenhagen Stock Exchange august 2 2011 ; Shares in Pandora lost about two-thirds of their value as the Danish jewellery manufacturer slashed its full-year earnings outlook and parted company with its chief executive.
The 65 per cent plunge in Pandora shares on the Copenhagen Stock Exchange came less than a year after it raised about DKr10bn (€1.3bn) from an initial public offering that was one of the biggest in Europe last year.
Pandora, best known for the charm bracelets that it sells in 55 countries, cut its 2011 revenue growth forecast from at least 30 per cent to zero, having only upgraded its forecast from 25 per cent on April 18 this year and reiterated this guidance on May 19.
It also cut the full-year forecast for its earnings before interest, tax, depreciation and amortisation margin from at least 40 per cent to the “low thirties”.
The company blamed a “sharp revenue deterioration” late in the second quarter for a slowdown in its year-on-year revenue growth to only 3.6 per cent in the second quarter, down from 41 per cent in the first quarter and 67 per cent in the preceding quarter.
Its ebitda fell by 6.2 per cent to DKr512m in the second quarter.
Pandora cited a myriad of contributing factors including hefty increases in gold and silver wholesale prices, increasingly price-sensitive customers, excessive production and gorged inventory lists.
“This performance and these results are totally unacceptable. There are no excuses for them, they are largely self-inflicted, they reflect poor execution,” said Allan Leighton, Pandora’s board chairman.
The situation “can be remedied – but over time,” added Mr Leighton, the former chairman of the Royal Mail in the UK.
Pandora, founded in 1982 by husband-and-wife team Per and Winnie Enevoldsen, has attempted in recent months to move its mid-market brand into a more exclusive category by increasing prices and vastly expanding its product range. But this strategy backfired as large segments of its traditional customer base shied away from Pandora’s pricier offerings.
“This business requires a reset back to its mass market, affordable luxury positioning and good old fashioned execution of the basics around price, range promotion, inventory upgrades and new accounts,” said Mr Leighton, who is also chairman of UK fashion chain Peacock and set-top box maker Pace.
Pandora said prices on key products have already been cut and no fresh retail price rises are likely either this year or next. It also plans a more aggressive marketing effort in emerging markets and said it would open 190 new concept stores in the second half of 2011.
Pandora’s travails are being seen in Copenhagen as a major blow to Axcel, the Danish private equity group that floated the jeweller in a highly successful IPO in October 2010. The float, priced at DKr210 a share, gave Pandora a market capitalisation of about DKr27bn.
The shares, which had briefly climbed above DKr370 earlier this year, fell to DKr51 on Tuesday afternoon, wiping DKr12.6bn off the company’s market value in one day.
Goldman Sachs, JPMorgan, Morgan Stanley and Nordea Bank were joint global co-ordinators and bookrunners for Pandora’s IPO.
Axle, which bought a 60 per cent stake in the company in 2008 from its founding family, still owns 32 per cent of the shares.
Mikkel Vendelin Olesen, Pandora’s chief executive, left the company on Tuesday “with immediate effect.” His position will be filled temporarily by Marcello Bottoli, a board member, until a new chief is appointed. For the latest updates PRESS CTR + D or visit Stock Market news Today
The 65 per cent plunge in Pandora shares on the Copenhagen Stock Exchange came less than a year after it raised about DKr10bn (€1.3bn) from an initial public offering that was one of the biggest in Europe last year.
Pandora, best known for the charm bracelets that it sells in 55 countries, cut its 2011 revenue growth forecast from at least 30 per cent to zero, having only upgraded its forecast from 25 per cent on April 18 this year and reiterated this guidance on May 19.
It also cut the full-year forecast for its earnings before interest, tax, depreciation and amortisation margin from at least 40 per cent to the “low thirties”.
The company blamed a “sharp revenue deterioration” late in the second quarter for a slowdown in its year-on-year revenue growth to only 3.6 per cent in the second quarter, down from 41 per cent in the first quarter and 67 per cent in the preceding quarter.
Its ebitda fell by 6.2 per cent to DKr512m in the second quarter.
Pandora cited a myriad of contributing factors including hefty increases in gold and silver wholesale prices, increasingly price-sensitive customers, excessive production and gorged inventory lists.
“This performance and these results are totally unacceptable. There are no excuses for them, they are largely self-inflicted, they reflect poor execution,” said Allan Leighton, Pandora’s board chairman.
The situation “can be remedied – but over time,” added Mr Leighton, the former chairman of the Royal Mail in the UK.
Pandora, founded in 1982 by husband-and-wife team Per and Winnie Enevoldsen, has attempted in recent months to move its mid-market brand into a more exclusive category by increasing prices and vastly expanding its product range. But this strategy backfired as large segments of its traditional customer base shied away from Pandora’s pricier offerings.
“This business requires a reset back to its mass market, affordable luxury positioning and good old fashioned execution of the basics around price, range promotion, inventory upgrades and new accounts,” said Mr Leighton, who is also chairman of UK fashion chain Peacock and set-top box maker Pace.
Pandora said prices on key products have already been cut and no fresh retail price rises are likely either this year or next. It also plans a more aggressive marketing effort in emerging markets and said it would open 190 new concept stores in the second half of 2011.
Pandora’s travails are being seen in Copenhagen as a major blow to Axcel, the Danish private equity group that floated the jeweller in a highly successful IPO in October 2010. The float, priced at DKr210 a share, gave Pandora a market capitalisation of about DKr27bn.
The shares, which had briefly climbed above DKr370 earlier this year, fell to DKr51 on Tuesday afternoon, wiping DKr12.6bn off the company’s market value in one day.
Goldman Sachs, JPMorgan, Morgan Stanley and Nordea Bank were joint global co-ordinators and bookrunners for Pandora’s IPO.
Axle, which bought a 60 per cent stake in the company in 2008 from its founding family, still owns 32 per cent of the shares.
Mikkel Vendelin Olesen, Pandora’s chief executive, left the company on Tuesday “with immediate effect.” His position will be filled temporarily by Marcello Bottoli, a board member, until a new chief is appointed. For the latest updates PRESS CTR + D or visit Stock Market news Today
Monday, July 25, 2011
Pandora shares prices Analysts prediction With Positive Outlooks
Pandora shares prices Analysts prediction With Positive Outlooks : Pandora Media may still be trading under its first-day June debut of $20 per share. But a pair of analysts has weighed in with a couple of positive outlooks for the digital radio company.
JP Morgan’s Doug Anmuth weighed in with his take, rating Pandora as “overweight.” That’s not exactly a straight buy suggestion. But Anmuth, Reuters reports, sent a note to investors pointing to the possibilities of Pandora bringing in significant money from mobile advertising as more people sign onto the online radio service using mobile applications.
Wells Fargo Securities' Jason Maynard rated the company an "outperform". Since Pandora represents only 3.6 percent of all radio listener hours, the company has huge room for growth, Maynard wrote, according to the Reuters report.
Other analysts have been less bullish on Pandora, pointing out that as the company adds new listeners, it has to pay more in royalties for music. They expressed doubts that the company’s advertising model could make enough to keep up with royalty costs.
GreenCrest Capital, which covers private companies, set a target stock price of $7 per share when Pandora went public. The gap between that target and the first-day stock price had some speculating that Pandora would be another in the recent string of public success stories.
But the stock has underperformed since then. For example, today at midday, Pandora shares traded at $17.81, down .22 cents on the day.
tag ; Pandora shares today, pandora stock prices today, Pandora shares prices prediction, Pandora stock prices forecast, Pandora shares prediction,pandora stock below ipo price, pandora stock prices trading, For the latest updates PRESS CTR + D or visit Stock Market news Today
JP Morgan’s Doug Anmuth weighed in with his take, rating Pandora as “overweight.” That’s not exactly a straight buy suggestion. But Anmuth, Reuters reports, sent a note to investors pointing to the possibilities of Pandora bringing in significant money from mobile advertising as more people sign onto the online radio service using mobile applications.
Wells Fargo Securities' Jason Maynard rated the company an "outperform". Since Pandora represents only 3.6 percent of all radio listener hours, the company has huge room for growth, Maynard wrote, according to the Reuters report.
Other analysts have been less bullish on Pandora, pointing out that as the company adds new listeners, it has to pay more in royalties for music. They expressed doubts that the company’s advertising model could make enough to keep up with royalty costs.
GreenCrest Capital, which covers private companies, set a target stock price of $7 per share when Pandora went public. The gap between that target and the first-day stock price had some speculating that Pandora would be another in the recent string of public success stories.
But the stock has underperformed since then. For example, today at midday, Pandora shares traded at $17.81, down .22 cents on the day.
tag ; Pandora shares today, pandora stock prices today, Pandora shares prices prediction, Pandora stock prices forecast, Pandora shares prediction,pandora stock below ipo price, pandora stock prices trading, For the latest updates PRESS CTR + D or visit Stock Market news Today
Friday, July 15, 2011
Pandora new version of its popular internet radio service
Pandora new version of its popular internet radio service : Pandora is rolling out a new version of its popular internet radio service this week that doesn’t rely on social networks such as Twitter or Facebook: It is a social network — or at least it will be, when the new, faster-loading, HTML5-powered version of the site goes live.
Pandora announced the service on Tuesday, which is rolling out now to premium Pandora One subscribers ($3 per month). Later, users of the free, ad-supported version will see the changes too.
This is serious business, now that Pandora is a public company; if these tweaks cause traffic to dip, Wall Street will make the startup, which counts approximately one sixth of the U.S. population as active users, pay.
TechCrunch is enamored with the changes, and waxes poetic, having received a preview from Pandora CTO Tom Conrad. If you prefer the quick version, here’s a summary of the changes the company announced.
Profiles and Music Feeds: Pandora has allowed users to maintain profiles (here’s mine) for years. The new version emphasizes them much more, allowing each user to create a Facebook-like profile page where friends can leave comments. But the activity feeds are the most important new social feature. When you “friend” someone on Pandora, you will see what they’re listening to, talking about, or rating, in a constantly-updated activity feed. Rather than relying on outside social networks, Pandora will have its own.
Playback bar: With all of this friending, commenting, reading, and navigating, Pandora needed a good way to keep letting you listen to music, which, after all, is still the point of the service. To cope with that, the new Pandora gives you a playback control bar that follows you around the site so you can skip, pause, and rate songs.
Faster load time: If you’ve created lots of stations on the current Flash version of Pandora you know the thing takes forever to load. This new version ditches Flash in favor of HTML5, and judging from the above report about Conrad’s demo, the new Pandora loads much, much faster. It’s about time.
Automatic recommendations: When a user searches for stuff on the new Pandora, it will autofill recommendations tailored to that user: genres, comedians, and auto-completed artist names based on the stuff it knows you like.
Better metadata: To learn more about a song, you’ll be able to click the artist name for a bio, expand the album art, and read the lyrics as you listen.
Back button: The new version’s use of HTML5 instead of Flash means that as you do all of this stuff, you’ll be able to use your web browser like a web browser, instead of a Flash app with its own discrete controls. In more simple terms, this means you’ll be able to use the Back button, finally, to navigate to the previous page without leaving the site and silencing the service.
Sharing: Because the new Pandora is an HTML5 web app, stations have their own URLs. You can share those however you want — or, use the service’s own sharing feature to send stuff to Twitter, Facebook, or Pandora’s own social network. For the latest updates PRESS CTR + D or visit Stock Market news Today
Pandora announced the service on Tuesday, which is rolling out now to premium Pandora One subscribers ($3 per month). Later, users of the free, ad-supported version will see the changes too.
This is serious business, now that Pandora is a public company; if these tweaks cause traffic to dip, Wall Street will make the startup, which counts approximately one sixth of the U.S. population as active users, pay.
TechCrunch is enamored with the changes, and waxes poetic, having received a preview from Pandora CTO Tom Conrad. If you prefer the quick version, here’s a summary of the changes the company announced.
Profiles and Music Feeds: Pandora has allowed users to maintain profiles (here’s mine) for years. The new version emphasizes them much more, allowing each user to create a Facebook-like profile page where friends can leave comments. But the activity feeds are the most important new social feature. When you “friend” someone on Pandora, you will see what they’re listening to, talking about, or rating, in a constantly-updated activity feed. Rather than relying on outside social networks, Pandora will have its own.
Playback bar: With all of this friending, commenting, reading, and navigating, Pandora needed a good way to keep letting you listen to music, which, after all, is still the point of the service. To cope with that, the new Pandora gives you a playback control bar that follows you around the site so you can skip, pause, and rate songs.
Faster load time: If you’ve created lots of stations on the current Flash version of Pandora you know the thing takes forever to load. This new version ditches Flash in favor of HTML5, and judging from the above report about Conrad’s demo, the new Pandora loads much, much faster. It’s about time.
Automatic recommendations: When a user searches for stuff on the new Pandora, it will autofill recommendations tailored to that user: genres, comedians, and auto-completed artist names based on the stuff it knows you like.
Better metadata: To learn more about a song, you’ll be able to click the artist name for a bio, expand the album art, and read the lyrics as you listen.
Back button: The new version’s use of HTML5 instead of Flash means that as you do all of this stuff, you’ll be able to use your web browser like a web browser, instead of a Flash app with its own discrete controls. In more simple terms, this means you’ll be able to use the Back button, finally, to navigate to the previous page without leaving the site and silencing the service.
Sharing: Because the new Pandora is an HTML5 web app, stations have their own URLs. You can share those however you want — or, use the service’s own sharing feature to send stuff to Twitter, Facebook, or Pandora’s own social network. For the latest updates PRESS CTR + D or visit Stock Market news Today
Tuesday, July 12, 2011
Pandora shares were down, Pandora fails to reassure on music royalties
Pandora shares were down, Pandora fails to reassure on music royalties : Shares of Pandora Media Inc (P.N) dropped nearly 4 percent on Tuesday after the online radio company said it will not renegotiate fees paid to music companies until 2014, offering little comfort to investors worried about hefty royalty charges.
The Internet music-streaming service operator said on its first analysts' conference call that improved margins would come through more advertising rather than declining music royalties.
It would start negotiating in 2014 for new music royalty rates that would take effect in 2016, executives said. Royalties are based on a complicated rates-formula that essentially rises each year until 2016, after which a new, unknown set of rates will kick in.
"We believe it will be an economically rational rate," said Joe Kennedy, Pandora's chief executive officer. Royalties currently eat up more than half of company revenue.
Pandora hopes to offset those expenses with revenue growth from new markets. He said the company saw growth coming from mobile devices, where it is seeing success on benchmarks such as the number of consumers downloading its mobile applications.
But growth from the car market will not ramp up significantly for another few years as it will take time for automakers to get Pandora onto their dashboards, and for consumers to replace existing cars, executives said.
On Tuesday, Pandora announced an expanded relationship with Ford Motor Co (F.N), bringing the service into 10 vehicles, and a new relationship with Toyota Motor Corp's (7203.T) Scion unit. It said it had 100 million registered users and 36 million active monthly users.
Pandora shares were down 3.6 percent at $18.56 on Tuesday afternoon, off an earlier low at $18.50.
Pandora lost $1.76 million on revenue of $137.8 million in the year ended January 31. Royalty payments totaled $69.4 million.
Its initial public offering in June attracted considerable attention after its stock quickly rose well above the $16 offer price before reversing course and crashing below it the following day. For the latest updates PRESS CTR + D or visit Stock Market news Today
The Internet music-streaming service operator said on its first analysts' conference call that improved margins would come through more advertising rather than declining music royalties.
It would start negotiating in 2014 for new music royalty rates that would take effect in 2016, executives said. Royalties are based on a complicated rates-formula that essentially rises each year until 2016, after which a new, unknown set of rates will kick in.
"We believe it will be an economically rational rate," said Joe Kennedy, Pandora's chief executive officer. Royalties currently eat up more than half of company revenue.
Pandora hopes to offset those expenses with revenue growth from new markets. He said the company saw growth coming from mobile devices, where it is seeing success on benchmarks such as the number of consumers downloading its mobile applications.
But growth from the car market will not ramp up significantly for another few years as it will take time for automakers to get Pandora onto their dashboards, and for consumers to replace existing cars, executives said.
On Tuesday, Pandora announced an expanded relationship with Ford Motor Co (F.N), bringing the service into 10 vehicles, and a new relationship with Toyota Motor Corp's (7203.T) Scion unit. It said it had 100 million registered users and 36 million active monthly users.
Pandora shares were down 3.6 percent at $18.56 on Tuesday afternoon, off an earlier low at $18.50.
Pandora lost $1.76 million on revenue of $137.8 million in the year ended January 31. Royalty payments totaled $69.4 million.
Its initial public offering in June attracted considerable attention after its stock quickly rose well above the $16 offer price before reversing course and crashing below it the following day. For the latest updates PRESS CTR + D or visit Stock Market news Today
Saturday, July 2, 2011
Pandora stock prices Forecast july 2011
Pandora stock prices Forecast july 2011 ; pandora stock prediction july 2011 ; Pandora Media's turbulent stock market ride continues this week as shares of the newly public company have risen over 50% primarily on speculation the company could be an acquisition target by DISH Network.
With its shares trading at $20.44 in Friday july 1 20111 morning trading, Pandora has a market value of $3.26 billion. (By the way, Pandora shares have come full circle. Its offering price was $16 and it started trading at $20. It soon dropped below $13 but has rallied.) That puts it well ahead of the current market values of other music companies such as Live Nation ($2.1 billion) and Warner Music Group ($1.28 billion). Both have capital structures different than that of Pandora, however, which means their enterprise values (basically the cost another company would pay to acquire them) are higher than that of Pandora.
Pandora's $3.26 billion market value puts it far ahead of some publicly traded radio broadcasting companies. The market values of Emmis and Radio One are just $42 million and $93 million, respectively. Both had net losses in their last 12-month earnings period. Entercom has a market value of $336 million, 12-month revenue of $391 million and new profit of $46 million. Pandora posted a $2 million loss on revenue of $138 million in its last 12 months.
Investors are valuing the company based on expectations of future performance that far outstrips its financial performance to date. That's why its market value is 22.6x its recent 12-month revenue. Larger, more mature broadcast companies are trading around 3x their recent 12-month revenue. Sirius XM, which Pandora will battle for share of auto-related listening, has a market cap of $8.72 billion but is worth just 3.1x its $2.8 billion revenue. At $29.92 billion, Viacom's market value is 3.2x revenue. Discovery's $11.55 market value is 3.1x revenue.
Even though Pandora has more in common with broadcasters and online media companies (they offer products and services that generate advertising revenue, they compete for a share of consumers' attention on the same devices), it is currently valued more like another hot Internet IPO. LinkedIn, which went public in May, has a market value of $8.81 billion that is 36x
For the latest updates PRESS CTR + D or visit Stock Market news Today
With its shares trading at $20.44 in Friday july 1 20111 morning trading, Pandora has a market value of $3.26 billion. (By the way, Pandora shares have come full circle. Its offering price was $16 and it started trading at $20. It soon dropped below $13 but has rallied.) That puts it well ahead of the current market values of other music companies such as Live Nation ($2.1 billion) and Warner Music Group ($1.28 billion). Both have capital structures different than that of Pandora, however, which means their enterprise values (basically the cost another company would pay to acquire them) are higher than that of Pandora.
Pandora's $3.26 billion market value puts it far ahead of some publicly traded radio broadcasting companies. The market values of Emmis and Radio One are just $42 million and $93 million, respectively. Both had net losses in their last 12-month earnings period. Entercom has a market value of $336 million, 12-month revenue of $391 million and new profit of $46 million. Pandora posted a $2 million loss on revenue of $138 million in its last 12 months.
Investors are valuing the company based on expectations of future performance that far outstrips its financial performance to date. That's why its market value is 22.6x its recent 12-month revenue. Larger, more mature broadcast companies are trading around 3x their recent 12-month revenue. Sirius XM, which Pandora will battle for share of auto-related listening, has a market cap of $8.72 billion but is worth just 3.1x its $2.8 billion revenue. At $29.92 billion, Viacom's market value is 3.2x revenue. Discovery's $11.55 market value is 3.1x revenue.
Even though Pandora has more in common with broadcasters and online media companies (they offer products and services that generate advertising revenue, they compete for a share of consumers' attention on the same devices), it is currently valued more like another hot Internet IPO. LinkedIn, which went public in May, has a market value of $8.81 billion that is 36x
For the latest updates PRESS CTR + D or visit Stock Market news Today
Wednesday, June 22, 2011
analyst Pandora's stock plunge could mean trouble for Silicon Valley IPOs
analyst Pandora's stock plunge could mean trouble for Silicon Valley IPOs : A week after Pandora's IPO, the euphoria has worn off. Investors seemed exuberant about the stock leading up to the IPO, and that led to a big first day of trading. And then ... splat! The stock hit a wall on the second day of trading as analysts set shockingly low price targets for the stock and investors made a hasty retreat.
One day, Wall Street is telling us Pandora is the golden goose. The next day, it's a turkey.
How could sentiment about the stock change that quickly?
"That's a difficult question to answer," said Lee Simmons, editor of Hoovers, an IPO research service in Austin, Texas.
In fact, I have yet to find anyone who can explain the head-spinning shift in conventional wisdom about Pandora's prospects.
This is not just about Pandora. This turnabout should be sounding alarms across Silicon Valley because there may be no better way to kill the tech IPO market than the appearance of any kind of funny business that stirs the echoes of dot-com bubble shenanigans.
If investors believe tech IPOs are a game for insiders and banks to make a buck, then many local tech companies may have to kiss their IPO dreams goodbye.
Indeed, there are growing signs investors are growing wary of tech IPO offerings. There have been 19 in 2011, according to Renaissance Capital. And so far, as a group, those stocks are down 2 percent on the year, according to Matt Therian, a Renaissance research analyst.
a high-flyer like LinkedIn is coming back to earth, with its shares down from $94.25 a share on the first day of trading to $67.81 on Tuesday.
Pandora sold its IPO stock at $16 a share, and they climbed as high as $25 on the first day of trading before closing at $17.42. The stock has fallen three out of four days since, to close at $13.50 Tuesday.
It's not just the drop, however, but the speed at which it occurred that sets Pandora apart. By the second day of trading, some analysts were setting a price target for the stock of $5 to $6 a share. Richard Greenfield, a securities analyst at BTIG, set a target of $5.50 a share. In a note to clients, Greenfield wrote:
"Pandora is a great consumer music service, but its business model does not scale in the same way as other successful Internet businesses."
There are all sorts of red flags contained in Pandora's filings. For instance, the rates that Pandora pays music companies go up as more people listen to more music. In other words, the more people use the service, the more unprofitable it becomes. Pandora hopes to overcome that by massively increasing the amount of ads it sells, but it's anyone's guess as to whether the company can pull that off.
Defenders of Pandora note that the company's revenues surged 150 percent last year. And they note that despite potential competition from companies like Apple (AAPL), there is huge opportunity still ahead for Pandora if it can strike deals to get embedded into car stereo systems.
"There are a lot of positives that may have gotten overwhelmed," Therian said. "I think there is still a lot of opportunity for them to grow the business."
But here's the thing: The good and the bad were clearly disclosed to investors in the filings before the company went public. No new startling information emerged after the IPO. And yet in the weeks before the IPO, the company said there was a such a surge in demand for shares that it raised the offering price from a range of $7 to $9 to $16 while also selling an extra 1 million shares.
Why were these investors so excited in the face of all these warnings? Were they just caught up in the growing hype following the LinkedIn IPO? Were they hearing something in the IPO road show? And why did they head for the hills right after the IPO?
A spokesman for Morgan Stanley, the bank that led Pandora's IPO, declined to comment. I contacted Pandora, but the company is still in a post-IPO quiet period, according to spokeswoman Deborah Roth, who emailed me a statement:
"Going public hasn't changed our business. We remain focused on the listener experience and building a long-term company that will provide for that."
The closest anyone could come to offering an explanation had to do with the amount of shares Pandora offered. The company sold less than 10 percent of its shares to the public, compared with a typical range of 20 to 25 percent for tech IPOs. By creating an artificial scarcity before the IPO, the company was able to dramatically raise the price, which in turn created more buzz and demand.
"By making available less than 10 percent of the total shares, that created a feeding frenzy," Simmons said.
The problem is this was one of several strategies used during the dot-com days to guarantee those huge, first-day surges in trading. While this is perfectly legal and clearly disclosed to investors, it still creates a misleading perception that demand is higher than it really is.
To be clear, I'm not implying that anyone has done something illegal here. I'm arguing that tactics like this one, which can lead to short-term benefits, can create long-term problems. For the latest updates PRESS CTR + D or visit Stock Market news Today
One day, Wall Street is telling us Pandora is the golden goose. The next day, it's a turkey.
How could sentiment about the stock change that quickly?
"That's a difficult question to answer," said Lee Simmons, editor of Hoovers, an IPO research service in Austin, Texas.
In fact, I have yet to find anyone who can explain the head-spinning shift in conventional wisdom about Pandora's prospects.
This is not just about Pandora. This turnabout should be sounding alarms across Silicon Valley because there may be no better way to kill the tech IPO market than the appearance of any kind of funny business that stirs the echoes of dot-com bubble shenanigans.
If investors believe tech IPOs are a game for insiders and banks to make a buck, then many local tech companies may have to kiss their IPO dreams goodbye.
Indeed, there are growing signs investors are growing wary of tech IPO offerings. There have been 19 in 2011, according to Renaissance Capital. And so far, as a group, those stocks are down 2 percent on the year, according to Matt Therian, a Renaissance research analyst.
a high-flyer like LinkedIn is coming back to earth, with its shares down from $94.25 a share on the first day of trading to $67.81 on Tuesday.
Pandora sold its IPO stock at $16 a share, and they climbed as high as $25 on the first day of trading before closing at $17.42. The stock has fallen three out of four days since, to close at $13.50 Tuesday.
It's not just the drop, however, but the speed at which it occurred that sets Pandora apart. By the second day of trading, some analysts were setting a price target for the stock of $5 to $6 a share. Richard Greenfield, a securities analyst at BTIG, set a target of $5.50 a share. In a note to clients, Greenfield wrote:
"Pandora is a great consumer music service, but its business model does not scale in the same way as other successful Internet businesses."
There are all sorts of red flags contained in Pandora's filings. For instance, the rates that Pandora pays music companies go up as more people listen to more music. In other words, the more people use the service, the more unprofitable it becomes. Pandora hopes to overcome that by massively increasing the amount of ads it sells, but it's anyone's guess as to whether the company can pull that off.
Defenders of Pandora note that the company's revenues surged 150 percent last year. And they note that despite potential competition from companies like Apple (AAPL), there is huge opportunity still ahead for Pandora if it can strike deals to get embedded into car stereo systems.
"There are a lot of positives that may have gotten overwhelmed," Therian said. "I think there is still a lot of opportunity for them to grow the business."
But here's the thing: The good and the bad were clearly disclosed to investors in the filings before the company went public. No new startling information emerged after the IPO. And yet in the weeks before the IPO, the company said there was a such a surge in demand for shares that it raised the offering price from a range of $7 to $9 to $16 while also selling an extra 1 million shares.
Why were these investors so excited in the face of all these warnings? Were they just caught up in the growing hype following the LinkedIn IPO? Were they hearing something in the IPO road show? And why did they head for the hills right after the IPO?
A spokesman for Morgan Stanley, the bank that led Pandora's IPO, declined to comment. I contacted Pandora, but the company is still in a post-IPO quiet period, according to spokeswoman Deborah Roth, who emailed me a statement:
"Going public hasn't changed our business. We remain focused on the listener experience and building a long-term company that will provide for that."
The closest anyone could come to offering an explanation had to do with the amount of shares Pandora offered. The company sold less than 10 percent of its shares to the public, compared with a typical range of 20 to 25 percent for tech IPOs. By creating an artificial scarcity before the IPO, the company was able to dramatically raise the price, which in turn created more buzz and demand.
"By making available less than 10 percent of the total shares, that created a feeding frenzy," Simmons said.
The problem is this was one of several strategies used during the dot-com days to guarantee those huge, first-day surges in trading. While this is perfectly legal and clearly disclosed to investors, it still creates a misleading perception that demand is higher than it really is.
To be clear, I'm not implying that anyone has done something illegal here. I'm arguing that tactics like this one, which can lead to short-term benefits, can create long-term problems. For the latest updates PRESS CTR + D or visit Stock Market news Today
Tuesday, June 21, 2011
Should You Buy Pandora ipo Today
Should You Buy Pandora ipo Today Wednesday june 22 2011 : Pandora Media took the plunge and hit the public market. Now you, too, can own a piece of your favorite streaming music service. But Mr. Market has hated this stock so far -- if you were first in line to buy shares on Wednesday, you've lost 44% of your investment already.
Fellow Fool Rick Munarriz called it: Amid Pandora's scorching hot IPO, he told you to stay away from the launch. Though revenue is growing like gangbusters, costs are tagging along as well and the company hasn't figured out how to turn a profit. And the share offering price more than doubled from the initial plan as fellow online darling LinkedIn and others threw chum in the IPO waters. LinkedIn hasn't done much better, by the way. Just short of a month into its public life, the stock has taken a 25% haircut from where it opened on its first day.
I have publicly stated that I want to own Pandora shares, going so far as calling it a serious threat to Apple iTunes and Sirius XM Radio. I still think that's true because Pandora out-Apples Apple itself in the user friendliness department, and that's worth a lot. But I'm not interested at any price, and the introduction prices looked too frothy even for me. Read More...
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Fellow Fool Rick Munarriz called it: Amid Pandora's scorching hot IPO, he told you to stay away from the launch. Though revenue is growing like gangbusters, costs are tagging along as well and the company hasn't figured out how to turn a profit. And the share offering price more than doubled from the initial plan as fellow online darling LinkedIn and others threw chum in the IPO waters. LinkedIn hasn't done much better, by the way. Just short of a month into its public life, the stock has taken a 25% haircut from where it opened on its first day.
I have publicly stated that I want to own Pandora shares, going so far as calling it a serious threat to Apple iTunes and Sirius XM Radio. I still think that's true because Pandora out-Apples Apple itself in the user friendliness department, and that's worth a lot. But I'm not interested at any price, and the introduction prices looked too frothy even for me. Read More...
Tag ; how to buy pandora ipo, pandora ipo date, pandora radio ipo date, pandora ipo release date, groupon ipo release date, pandora goes public, when will pandora stock be available, ipo release dates, pandora ipo symbol, when will pandora go public, invest in pandora, should I buy pandora stock, INVESTING IN PANDOra, renren ipo date, pandora public offering date, pandora ticker symbol, should I invest in pandora, pandora ipo price, pandora ipo ticker, when is pandoras ipo, pandora ipo, date of pandora IPO, when does pandora go public, when can I buy pandora stock, twitter ipo date, when will pandora ipo, pandora radio ticker symbol, pandora stock ipo date, when is Pandora\s ipo, when is renren going public, pandora media ipo date, pandora radio ipo, pandora music stock symbol, pandora music stock, pandora public stock, ipo launch dates, ipo release date, how to invest in pandora ipo, should you buy pandora stock, linkedin ipo release date, pandora ipo ticker symbol, how to buy pandora ipo, pandora radio goes public, should I buy pandora stock?, pandora investment, pandora invest, For the latest updates PRESS CTR + D or visit Stock Market news Today
Pandora Now Trades On Hope, Investors are wary of the company’s long-term prospects
Pandora Now Trades On Hope, Investors are wary of the company’s long-term prospects : After Pandora’s strong opening IPO, the company quickly came back to earth. As of this writing, the stock has dropped well below its IPO price of $16.
Investors are wary of the company’s long-term prospects. Right now, Pandora stock symbol (P) pays more in royalties on every song it plays than it brings in with advertising revenue. The more songs users listen to, the greater the loss.
Take a look – last quarter brought in $51 million in sales, it’s best performance ever – more than twice what it made a year ago ($22 million). The company also lost $6.8 million on those sales – more than twice what it lost a year ago ($3 million).
All told, Pandora has lost $92.1 million since its founding and has never made money, with no end in sight to that trend. Pandora’s own filing says there’s no possibility of profits before 2013 at the earliest – and no reason to think that 2013 will be any better than this year.
In fact, the odds are stacked against it…
Declining Growth, Shifting Listening and Big Competition
More and more of Pandora’s music is being listened to on mobile devices – and, while the royalties paid remain the same, ad revenue dips for mobile listening.
Those royalties, meanwhile, can’t be renegotiated until 2015 – and at that point, there’s little reason to believe music companies will lower their fees.
Worse – Pandora’s sales growth is slowing, thanks to the aforementioned shift to listening on smartphones and tablets.
* At the same time, competition is heating up. While no other listening experience offers Pandora’s personalized music stations – which are a tremendous way for listeners to find new music – there are a number of viable alternatives.
* Internet radio stations are popping up all over the place – and it isn’t very hard to find terrestrial radio stations online either.
* Cloud services from Amazon, Google, and Apple all are offering streaming music of one sort or another – whether it’s your own music available from anywhere, or a huge database available for rent.
However, this isn’t to say that Pandora will never be profitable…
Pandora’s Long-Term Possibilities, Short-Term Confusion
Pandora has a unique business and customers universally love the service. Those things will often lead to profits, in the long run.
But it may take a good bit of time getting there. As Pandora’s service grows – and the company is adding a listener a second – the company may be able to demand more from its advertisers.
But maybe not – much depends on how effective those ads are. It’s quite possible that advertising revenue will never pay the bills. Perhaps a subscription service is in Pandora’s future – though whether its hordes of customers will follow remains to be seen.
Maybe some other business model will be the one that wins out. And maybe Pandora won’t survive long enough to find the correct balance, or will find its unique delivery system oft-copied, and sink under a flurry of competition. The future is murky.
Pandora is surrounded by a number of questions. Proceed with caution. For the latest updates PRESS CTR + D or visit Stock Market news Today
Investors are wary of the company’s long-term prospects. Right now, Pandora stock symbol (P) pays more in royalties on every song it plays than it brings in with advertising revenue. The more songs users listen to, the greater the loss.
Take a look – last quarter brought in $51 million in sales, it’s best performance ever – more than twice what it made a year ago ($22 million). The company also lost $6.8 million on those sales – more than twice what it lost a year ago ($3 million).
All told, Pandora has lost $92.1 million since its founding and has never made money, with no end in sight to that trend. Pandora’s own filing says there’s no possibility of profits before 2013 at the earliest – and no reason to think that 2013 will be any better than this year.
In fact, the odds are stacked against it…
Declining Growth, Shifting Listening and Big Competition
More and more of Pandora’s music is being listened to on mobile devices – and, while the royalties paid remain the same, ad revenue dips for mobile listening.
Those royalties, meanwhile, can’t be renegotiated until 2015 – and at that point, there’s little reason to believe music companies will lower their fees.
Worse – Pandora’s sales growth is slowing, thanks to the aforementioned shift to listening on smartphones and tablets.
* At the same time, competition is heating up. While no other listening experience offers Pandora’s personalized music stations – which are a tremendous way for listeners to find new music – there are a number of viable alternatives.
* Internet radio stations are popping up all over the place – and it isn’t very hard to find terrestrial radio stations online either.
* Cloud services from Amazon, Google, and Apple all are offering streaming music of one sort or another – whether it’s your own music available from anywhere, or a huge database available for rent.
However, this isn’t to say that Pandora will never be profitable…
Pandora’s Long-Term Possibilities, Short-Term Confusion
Pandora has a unique business and customers universally love the service. Those things will often lead to profits, in the long run.
But it may take a good bit of time getting there. As Pandora’s service grows – and the company is adding a listener a second – the company may be able to demand more from its advertisers.
But maybe not – much depends on how effective those ads are. It’s quite possible that advertising revenue will never pay the bills. Perhaps a subscription service is in Pandora’s future – though whether its hordes of customers will follow remains to be seen.
Maybe some other business model will be the one that wins out. And maybe Pandora won’t survive long enough to find the correct balance, or will find its unique delivery system oft-copied, and sink under a flurry of competition. The future is murky.
Pandora is surrounded by a number of questions. Proceed with caution. For the latest updates PRESS CTR + D or visit Stock Market news Today
Monday, June 20, 2011
pandora stock price prediction june 2011
pandora stock price prediction june 2011 : LinkedIn Corp. (NYSE: LNKD) is down some more than 30% from since its initial public offering (IPO) and Pandora Media Inc. (NYSE: P), which had a strong debut just last week, has dropped 35%.
Indeed, billion-dollar valuations for companies like Pandora and online coupon site Groupon Inc. have lured tech-hungry investors into buying what they think is the next big Internet stock. But the reality is that these companies are driving demand through low-float IPOs and undeliverable growth promises.
Investors need to understand that despite the excitement surrounding Internet and social media companies, the chance that these businesses will deliver on profitability promises is slim to none.
The fact that these companies were able to garner as much investor interest as they did raises a red flag that suggests a new tech bubble has formed - and is ready to burst.
"It's 1999; I wouldn't touch any of them," said Money Morning Contributing Editor Martin Hutchinson. "Every possible warning bell is telling me this is a bubble and we're close to its maximum inflation."
Beware the Low-Float IPO
Pandora's IPO was initially expected to go for $7 to $9, but doubled to a $16 per share offer price. When trading started Wednesday, its shares soared more than 40% in the first hour, but closed only 8.9% higher. Then they promptly fell about 23% on day two.
Now shares are down about 35% from the IPO price - and many investors wonder why they were so quick to buy in.
Analysts partly blame Pandora's low-float IPO strategy. A low-float IPO drives demand because investors think they will be shut out of a chance to get the stock at a good price and they act more impulsively, ignoring fundamentals. The strategy has been especially effective this year, as buzz around tech stocks has stoked pent-up investor demand.
"If you're dying of thirst, you'll accept iced tea even if you really want lemonade," Max Wolff, senior analyst at GreenCrest Capital, told CNNMoney. "It's a perfect storm of fury, frustration, excitement and delay."
Pandora floated only 9.2% of shares, far below the 24% average float for U.S. tech IPOs in the past year.
Caught up in the thrill of the chase - lots of investment dollars are chasing a small amount of available shares - investors ignored that Pandora's profitability is threatened by increasing competition and costs. The company has provided nothing substantial to show it can overcome these threats and give investors solid returns.
"I wouldn't touch it with a 10-foot pole," Money Morning Chief Investment Strategist Keith Fitz-Gerald said on FoxBusiness' "Bulls & Bears." "Pandora has lost money for a decade and faces the same problem used car salesmen face worldwide...how to convert tire kickers to buyers."
Fitz-Gerald's fellow "Bulls & Bears" panel member Gary B. Smith agrees that Pandora's profitability is too questionable to be a good investment - at almost any price.
"At any price, unless it was maybe $1 or something, I wouldn't touch it," said Smith. "This is a company with 39 million active subscribers. They're losing money - in fact, every time they add a subscriber they lose money. I use Pandora, I like it - it's free, I would never pay for it."
The next Internet stock that could go public is gaming company Zynga Game Network Inc., which is also expected to use the low-float IPO maneuver. Rumors are swirling that it could file this month and make less than 10% of its shares available to the public.
"Companies in this space realize there's a feeding frenzy afoot," David Menlow, president of research firm IPOfinancial.com, told Bloomberg News. "The risk is that as a CEO you believe you are better than you actually are. The reality may be something very different." For the latest updates PRESS CTR + D or visit Stock Market news Today
Indeed, billion-dollar valuations for companies like Pandora and online coupon site Groupon Inc. have lured tech-hungry investors into buying what they think is the next big Internet stock. But the reality is that these companies are driving demand through low-float IPOs and undeliverable growth promises.
Investors need to understand that despite the excitement surrounding Internet and social media companies, the chance that these businesses will deliver on profitability promises is slim to none.
The fact that these companies were able to garner as much investor interest as they did raises a red flag that suggests a new tech bubble has formed - and is ready to burst.
"It's 1999; I wouldn't touch any of them," said Money Morning Contributing Editor Martin Hutchinson. "Every possible warning bell is telling me this is a bubble and we're close to its maximum inflation."
Beware the Low-Float IPO
Pandora's IPO was initially expected to go for $7 to $9, but doubled to a $16 per share offer price. When trading started Wednesday, its shares soared more than 40% in the first hour, but closed only 8.9% higher. Then they promptly fell about 23% on day two.
Now shares are down about 35% from the IPO price - and many investors wonder why they were so quick to buy in.
Analysts partly blame Pandora's low-float IPO strategy. A low-float IPO drives demand because investors think they will be shut out of a chance to get the stock at a good price and they act more impulsively, ignoring fundamentals. The strategy has been especially effective this year, as buzz around tech stocks has stoked pent-up investor demand.
"If you're dying of thirst, you'll accept iced tea even if you really want lemonade," Max Wolff, senior analyst at GreenCrest Capital, told CNNMoney. "It's a perfect storm of fury, frustration, excitement and delay."
Pandora floated only 9.2% of shares, far below the 24% average float for U.S. tech IPOs in the past year.
Caught up in the thrill of the chase - lots of investment dollars are chasing a small amount of available shares - investors ignored that Pandora's profitability is threatened by increasing competition and costs. The company has provided nothing substantial to show it can overcome these threats and give investors solid returns.
"I wouldn't touch it with a 10-foot pole," Money Morning Chief Investment Strategist Keith Fitz-Gerald said on FoxBusiness' "Bulls & Bears." "Pandora has lost money for a decade and faces the same problem used car salesmen face worldwide...how to convert tire kickers to buyers."
Fitz-Gerald's fellow "Bulls & Bears" panel member Gary B. Smith agrees that Pandora's profitability is too questionable to be a good investment - at almost any price.
"At any price, unless it was maybe $1 or something, I wouldn't touch it," said Smith. "This is a company with 39 million active subscribers. They're losing money - in fact, every time they add a subscriber they lose money. I use Pandora, I like it - it's free, I would never pay for it."
The next Internet stock that could go public is gaming company Zynga Game Network Inc., which is also expected to use the low-float IPO maneuver. Rumors are swirling that it could file this month and make less than 10% of its shares available to the public.
"Companies in this space realize there's a feeding frenzy afoot," David Menlow, president of research firm IPOfinancial.com, told Bloomberg News. "The risk is that as a CEO you believe you are better than you actually are. The reality may be something very different." For the latest updates PRESS CTR + D or visit Stock Market news Today
pandora stock symbol
pandora stock symbol : This was the week when two Pandoras went public. First was the wildly anticipated and ultimately disappointing IPO of Pandora Media, which made its debut on the NYSE under the coveted ticker symbol "P."
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Tuesday, June 14, 2011
Pandora Media Inc priced its stock at $16 per share Tuesday june 14 2011
Pandora Media Inc priced its stock at $16 per share Tuesday june 14 2011, raising a higher than expected $234.9 million from the initial public offering on the eve of the Internet radio firm's debut on the New York Stock Exchange.
The Oakland company had set range of $10 to $12 per share last week, an increase from an earlier range of $7 to $9 per share. With a market eager for technology company IPOs, Pandora had also added about 1 million shares to the offering, bringing the total number of shares sold by the company and its investors to 14.7 million.
The IPO price sets Pandora's valuation at about $2.6 billion.
In an equity research report issued earlier this week, GreenCrest Capital Management LLC. said that Pandora would be overvalued at $10 to $12 per share. The report recommended investors look for $7.50 per share, which would place Pandora's market valuation at $1.2 billion.
"Pandora offers a unique value-proposition to users, providing a customized music listening experience over its algorithmic platform," the report said. "However, given the significant pressures expected in the industry, we believe Pandora's long-term relevance is dependent on its ability to improve overall audience targeting capabilities, develop new and creative ad formats for mobile and grow subscription conversion."
Pandora is getting attention because it is the latest tech company to do an IPO, on the heels of professional social networking firm LinkedIn and Renren, the "Facebook of China." Daily deals site Groupon filed plans for an IPO earlier this month and social games maker Zynga is reportedly set to file later this month.
As of April 30, Pandora had 94 million registered members, including 34 million active members who tune in monthly. That's more than double the number of the number of active members Pandora had in April 2010. For the latest fiscal year, which ended Jan. 31, 2011, Pandora members listened to 3.8 billion hours of programming.
Pandora lets members create personalized stations based on artists or genre. The service is free up to 40 hours of listening per calendar month. It costs 99 cents to continue unlimited listening until the end of that month, or $36 to upgrade to unlimited listening for one year.
Relatively few members subscribe. About 86 percent of Pandora's revenues come from advertising, and revenues have increased from $55.2 million in fiscal year 2010 to $137.8 million in 2011, which ended Jan. 31.
LinkedIn, which has a similar base of 102 million members, posted $15.4 million in net income in 2010. But in contrast, Pandora posted a net loss of $16.8 million for fiscal year 2010.
In fact, Pandora has mostly lived a hand-to-mouth existence financially since the company was founded in 2000 and has an accumulated deficit since that time of $92.1 million.
Pandora shaved that net loss to $1.8 million in fiscal year 2011, which ended Jan. 31, but lost $6.8 million in the first quarter, which ended April 30. It also expects to continue annual operating losses through fiscal year 2012, according to the company's latest filing with the Securities and Exchange Commission.
Some analysts are questioning whether Pandora can generate enough revenues from advertising, especially on mobile devices, to cover the music licensing costs that rises as the number of listener hours increases.
The company's content acquisition costs, mainly royalty payments to the music industry, were $69.4 million in the last fiscal year, compared to $32.9 million the year before.
But Pandora is betting on its front running role in an Internet audio market that is just starting to take off, especially with more listeners using mobile devices such as smart phones. In the last quarter, 60.3 percent of listener hours were on mobile devices.
"Pandora redefines radio by taking the very best of what makes broadcast radio so successful over the past 100 years and combining it with the capabilities which the Internet has uniquely enabled," chief executive officer Joe Kennedy said during an IPO "road show" presentation.
Other digital audio firms are also watching how Pandora fares Wednesday.
"We're rooting for companies like Pandora," said Daren Tsui, chief executive officer of mSpot Inc. of Palo Alto. MSpot, which launched in 2004, carved its own niche by providing "white label" music services for wireless carriers like Sprint and AT&T.
"I want them to be successful because it just shows our space is healthy," he said.
And Noah Shanok, CEO of Stitcher Inc., said Pandora going public validates the industry for companies like his, a San Francisco firm that is similar to Pandora, but instead offers on-demand Internet talk programs.
"It's the first IPO in our industry and there will be many more to come,'' Shanok said. "The industry is just only getting started."
Hearst Communications Inc., which publishes The Chronicle, is an investor in Pandora Media. For the latest updates PRESS CTR + D or visit Stock Market news Today
The Oakland company had set range of $10 to $12 per share last week, an increase from an earlier range of $7 to $9 per share. With a market eager for technology company IPOs, Pandora had also added about 1 million shares to the offering, bringing the total number of shares sold by the company and its investors to 14.7 million.
The IPO price sets Pandora's valuation at about $2.6 billion.
In an equity research report issued earlier this week, GreenCrest Capital Management LLC. said that Pandora would be overvalued at $10 to $12 per share. The report recommended investors look for $7.50 per share, which would place Pandora's market valuation at $1.2 billion.
"Pandora offers a unique value-proposition to users, providing a customized music listening experience over its algorithmic platform," the report said. "However, given the significant pressures expected in the industry, we believe Pandora's long-term relevance is dependent on its ability to improve overall audience targeting capabilities, develop new and creative ad formats for mobile and grow subscription conversion."
Pandora is getting attention because it is the latest tech company to do an IPO, on the heels of professional social networking firm LinkedIn and Renren, the "Facebook of China." Daily deals site Groupon filed plans for an IPO earlier this month and social games maker Zynga is reportedly set to file later this month.
As of April 30, Pandora had 94 million registered members, including 34 million active members who tune in monthly. That's more than double the number of the number of active members Pandora had in April 2010. For the latest fiscal year, which ended Jan. 31, 2011, Pandora members listened to 3.8 billion hours of programming.
Pandora lets members create personalized stations based on artists or genre. The service is free up to 40 hours of listening per calendar month. It costs 99 cents to continue unlimited listening until the end of that month, or $36 to upgrade to unlimited listening for one year.
Relatively few members subscribe. About 86 percent of Pandora's revenues come from advertising, and revenues have increased from $55.2 million in fiscal year 2010 to $137.8 million in 2011, which ended Jan. 31.
LinkedIn, which has a similar base of 102 million members, posted $15.4 million in net income in 2010. But in contrast, Pandora posted a net loss of $16.8 million for fiscal year 2010.
In fact, Pandora has mostly lived a hand-to-mouth existence financially since the company was founded in 2000 and has an accumulated deficit since that time of $92.1 million.
Pandora shaved that net loss to $1.8 million in fiscal year 2011, which ended Jan. 31, but lost $6.8 million in the first quarter, which ended April 30. It also expects to continue annual operating losses through fiscal year 2012, according to the company's latest filing with the Securities and Exchange Commission.
Some analysts are questioning whether Pandora can generate enough revenues from advertising, especially on mobile devices, to cover the music licensing costs that rises as the number of listener hours increases.
The company's content acquisition costs, mainly royalty payments to the music industry, were $69.4 million in the last fiscal year, compared to $32.9 million the year before.
But Pandora is betting on its front running role in an Internet audio market that is just starting to take off, especially with more listeners using mobile devices such as smart phones. In the last quarter, 60.3 percent of listener hours were on mobile devices.
"Pandora redefines radio by taking the very best of what makes broadcast radio so successful over the past 100 years and combining it with the capabilities which the Internet has uniquely enabled," chief executive officer Joe Kennedy said during an IPO "road show" presentation.
Other digital audio firms are also watching how Pandora fares Wednesday.
"We're rooting for companies like Pandora," said Daren Tsui, chief executive officer of mSpot Inc. of Palo Alto. MSpot, which launched in 2004, carved its own niche by providing "white label" music services for wireless carriers like Sprint and AT&T.
"I want them to be successful because it just shows our space is healthy," he said.
And Noah Shanok, CEO of Stitcher Inc., said Pandora going public validates the industry for companies like his, a San Francisco firm that is similar to Pandora, but instead offers on-demand Internet talk programs.
"It's the first IPO in our industry and there will be many more to come,'' Shanok said. "The industry is just only getting started."
Hearst Communications Inc., which publishes The Chronicle, is an investor in Pandora Media. For the latest updates PRESS CTR + D or visit Stock Market news Today
Friday, June 10, 2011
Pandora ups IPO price June 10 2011 to $10 to $12 per share
Pandora ups IPO price June 10 2011 to $10 to $12 per share ; The streaming-music provider filed a document with the Securities and Exchange Commission today, indicating that it would be offering its shares for between $10 and $12 when they hit the New York Stock Exchange under the ticker "P." The company previously announced that it would offer its shares in the range of $7 to $9.
Pandora, expected to go public soon, will register nearly 16.9 million shares with the SEC, including over 2.2 million that underwriters can purchase to cover over-allotment after the stock goes on sale. All told, the company hopes to raise as much as $202.6 million in its IPO. Earlier this month, Pandora filed a document with the SEC indicating that it hoped to raise approximately $140 million in its IPO.
Pandora will become another in a growing number of online companies hitting the U.S. stock market. Last month, business-networking site LinkedIn opened at $45 per share on the NYSE. Though it ended the day up 109 percent to $94.25 per share, at one point on its first day, it was trading at $122.70.
That success was followed up last month by the IPO of Russian search engine Yandex. The firm's shares, which were offered at $25, ended their first day up to $37.75.
Now, another online titan is eying an IPO. Last week, daily-deals provider Groupon filed for an IPO valued at $750 million. For the latest updates PRESS CTR + D or visit Stock Market news Today
Pandora, expected to go public soon, will register nearly 16.9 million shares with the SEC, including over 2.2 million that underwriters can purchase to cover over-allotment after the stock goes on sale. All told, the company hopes to raise as much as $202.6 million in its IPO. Earlier this month, Pandora filed a document with the SEC indicating that it hoped to raise approximately $140 million in its IPO.
Pandora will become another in a growing number of online companies hitting the U.S. stock market. Last month, business-networking site LinkedIn opened at $45 per share on the NYSE. Though it ended the day up 109 percent to $94.25 per share, at one point on its first day, it was trading at $122.70.
That success was followed up last month by the IPO of Russian search engine Yandex. The firm's shares, which were offered at $25, ended their first day up to $37.75.
Now, another online titan is eying an IPO. Last week, daily-deals provider Groupon filed for an IPO valued at $750 million. For the latest updates PRESS CTR + D or visit Stock Market news Today
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