If You Invested $1 Million In Pandora Last Year, You’d Have $451,975 Today

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Wall Street has been battering Pandora over the past few days, thanks to massive quarterly losses of $85.9 million, a $90 million royalty hit, and a massive competitive threat from Apple Music and Beats 1.  In the past five days alone, Pandora’s shares have dropped 35.25 percent, and a monstrous 54.8 percent since the start of 2014.

Which means that if you had invested $1 million in Pandora stock on January 3rd, 2014 (the first open trading day of that year), you’d now have $451,975 today.
That number gets even worse if you happened to purchase at Pandora’s 2014-high of $37.42, reached on February 28th.  In that scenario, the foolhardy investor would now have $332,977 on an initial, $1 million investment.  And for those thinking of jumping ship in 2015, there’s little consensus among analysts: according to Zacks Research, the most bullish projection sees Pandora rebounding to $28 within the next year, while the lower-end prediction is $10.


3 Responses

  1. Ine Stein

    Convenient math. Pick the near highest point and recent lowest point to illustrate such a loss. Because the first trading day of the year is such a meaningful time for buying Pandora stock. No way you would’ve bought in say July of this year. And then have sold on oh let’s see Oct 6th at close to 22 per share. Now your investment would be up 60%. What a difference time makes.
    What is the point of this article? To make people run away so your competitor stock does better? Or maybe so you can get this at a lower price, knowing it will CONTINUE to be the leader in radio? Either way. It would appear Mr. Buffett’s advice holds true. When others are fearful, be…..
    And one more thing. If I had an extra $1 million (as so many of us 99%ers do) to drop on this one stock alone, I could give two s**ts the market has misread a unique quarter and has predicted the doom of this company. In fact, assuming I had the first million, I would most certainly go and put another million while at this discount and know in the near future, I would never have to worry about money again. So 82 million of a loss for this qtr? So with a purchase of Ticketfly for 450 m + 70 of 90m pre 1972 lawsuit, and only out 82m, tells me P has plenty of cash on hand to pay this sum in one qtr and still only be out 82 mil. (or 15% of this spend)
    30% revenue increases yoy continuously for ea qtr as far as you want to look back.
    80 million monthly (active) users. That’s a qtr of the US population. . .
    So again I ask, what is the point of this article??

  2. jury duty

    It sounds like a great time to invest in Pandora stock. it’s a classic buy low, sell high. Once they start announcing their integration plans with TicketFly it will most certainly see an upward trend again.

  3. Anonymous

    Cool story. If you invested $1m in that little dip in 2013 you’d have a little more money. Or if you cashed out at that high point in 2014 you’d have a lot more money.

    Interesting how math works. Craaaaazzyyy