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Thread: Pandora down 10% on earnings

  1. #1
    MUSCLE13 is offline
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    Pandora down 10% on earnings

    This is what happens when there is no barrier to entry for internet radio -

    Bloomberg excerpt -

    “Usage is stagnating, I think that’s the fundamental challenge, competition has been starting to take its toll,” Rich Greenfield, an analyst with BTIG LLC, said in a telephone interview. “That’s going to scare the market for what’s supposed to be a rapid growth Internet company.”

    Larger companies are building services to compete with Pandora, such as Google Inc.’s purchase of Songza Media Inc. and Apple Inc.’s acquisition of Beats Electronics LLC. The number of Pandora listeners and the amount of time they spend using the service is little changed on a monthly basis from December to June, said Greenfield, who rates the stock a sell.


    http://www.bloomberg.com/news/2014-0...tml?cmpid=yhoo

  2. #2
    MUSCLE13 is offline
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    By the way my price targets for 2014 year end for Sirius is $3.80 based on 20 times free Cash Flow per share of 19 cents and $4.80 for year end 2015 based on 20 times Free cash flow per share of 24 cents. With all the buyback activity I think my 2015 target may be conservative at this point.

    Take care everybody............Catch you next year.
    Last edited by MUSCLE13; 07-27-2014 at 11:35 AM.

  3. #3
    MUSCLE13 is offline
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    Pandora crushed after earnings again today.........What a surprise Competition causing slowing of growth.

    When there is no barrier to entry for internet radio, how can anyone not have expected an avalanche of competition?

  4. #4
    MUSCLE13 is offline
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    Costs rising, Competition increasing, and Growth slowing. Quite honestly did any sophisticated investor not know what was coming here? I remember Greenfield at BTIG called this years and years ago. I guess it took some time for the market to finally listen to him.

    WSJ -

    http://online.wsj.com/articles/heard...ote-1414180601
    Last edited by MUSCLE13; Today at 12:27 AM.

  5. #5
    MUSCLE13 is offline
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    LOL Look at what Greenfield just wrote today again. How come nobody listened to him before? Mindboggling.

    Rich Greenfield ‏@RichBTIG

    Remember unlike @Netflix, there are no barriers to entry in online music

    BTIG Research

    Pandora

    We continue to believe Pandora is significantly overvalued (link). Last night, management finally admitted that user growth and listening hour growth would be harder to come by going forward as c...


    https://twitter.com/RichBTIG/status/525713070795268097

  6. #6
    Faulkner_SA is offline
    I wrote about all this back in 2012 what about meeee?


    http://seekingalpha.com/article/9257...-moat-no-walls

  7. Ad Fairy Senior Member

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