Pandora’s Summer Surge Starts Melting on Wall Street; ‘Buy’ Ratings Prevail

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Pandora (P) is now witnessing a modest summer run-up go poof, thanks to a broader Wall Street meltdown that has music and entertainment stocks under pressure.  In Monday trading, shares of Pandora slipped another 4.03 percent to $17.13, with sub-$15 valuations likely in the near-term.

Earlier this month, Pandora pushed towards the $20-mark before getting brushed back at $19.38 on August 12th.  Since that point, Pandora has slipped a noticeable 11.38 percent, with the slide now heading into overdrive.

Of course, that’s now par for a very treacherous course.  Few are being spared from a Chinese tsunami that is punishing global markets, while punishing paper wealth and stoking fears of a greater economic downturn.  In a ‘Black Monday’ rout, China’s Shanghai composite index returned all of its 2015 gains by the close of trading, with stateside barometers like the S&P 500 handing back another 3.8 percent in a broader, multi-month correction.

In that volatility, the question is just how extra-vulnerable stocks like Pandora may be: despite substantial ‘Buy’ ratings with price targets averaging just over $20, a number of investment houses are shifting towards less complementary assessments.  That includes an ‘Overweight’ by Piper Jaffray and Albert Fried & Co., and a bearishly ‘Neutral’ rating from B. Riley with an accompanying $15 price target.

The question is how Pandora’s schooner will navigate the storm, analyst optimism notwithstanding.  Despite heavy surges in listening totals and continued dominance in the internet radio realm, Pandora has failed to post a profit in the past three years, with cash-burn now greater than $200 million since inception.  Indeed, that soggy resume has contributed to a broader 35-plus-percent dip in 2015, with looming licensing wars with mega-publishers like Sony/ATV furthering investor anxiety.

4 Responses

  1. Remi Swierczek

    Pandora is made to be $5B music store tomorrow!
    Google, Shazam, Sounhound and just 20 more music and lyric ID services are preventing MUSIC from becoming simple merchandise again!
    For the moment they are just PIMPING music to 2 billion pirating freeloaders converting billions in music goodwill to millions in advertising or NOTHING. Shazam with 500 million users makes NOTHING! Local grocery store serving my neighborhood is two times bigger than SHAZAM!

    Lucian Grainge and Doug Morris should quit now! Have some honor boys.

  2. SXDMG

    Did they give my spoken word lyrics the proper credit this time around (C) inside the federal courthouse: ‘ The only decent , Jew , is a beheaded , Jew , like an antibiotic to stop the rights holder stealing flu ‘. How you going to leave a publisher on disability for eleven years in (50) up front distribution camps is a testament to , Hitler’s propaganda on his justification to start his concentration–segregation–eXtermination camp. : your friendly neighborhood poet , Literati X , with more assets than you have cheerios inside your cereal bowl . . .

  3. Eric H Bonner

    250 billion USD is my personal price and my New York and Michigan mob can have three times the rest for a less than half equitable solution simply because to make me whole would evaporate your existence. . . : Digital Music News got more inside connections about the music industry than the outside spying and looking in ‘ TMZ ‘. . .

    • Phantom X

      Do a one time market correction like , Godzilla , trampling down Wall Street and drive these motherfuckers back into the stone ages where they rightfully belong being true to the free capital bond markets and not the rigged and fiXed communist and socialist way of doing business. . .: Literati X