Will Pandora Continue Its Surge Higher?
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.
It looks like Pandora battle to pay musicians and songwriters less for streaming their music is paying off for the company. Mark Mahaney of RBC Capital Markets told CNBC on Monday that Pandora stock is a smart buy despite a recent price drop. “The cost structure is starting to really work positively, i.e., they’re bringing down those music royalty costs,” he said in a video segment. “They’re making them smaller and smaller. They’re showing that they can monetize mobile usage. This is the poster child for mobile monetization, and they finally got it working.”