Will Pandora Continue Its Surge Higher With a New CEO?
T = Trends for a Stock’s Movement
Pandora is an Internet radio company that operates in the United States with over 125 million registered users. Pandora’s Music Genome Project and its playlist-generating algorithms predict listener music preferences, play music content suited to the tastes of each individual listener, and introduce listeners to music they will love. The main sources of revenue for the company are advertising as well as subscriptions. As the Internet music boom continues, Pandora is well-positioned to capitalize on potential subscriptions and advertising marketing share.
Pandora has finally tapped a new CEO after announcing in March that current CEO Joe Kennedy was stepping down. Former ad executive Brian McAndrews will take Kennedy’s place. McAndrews was likely attractive to Pandora because of his experience in the ad world, which could help the Internet radio provider find new ways to monetize its service. Pandora needs to step up its game in the face of high royalties and new competition from Apple’s (NASDAQ:AAPL) rival iTunes Radio.