SELL Pandora Media (P)
From The National Investor
Updated from Wall Street’s Best Investments 799, November 15, 2017
Pandora Media (P) only lost 27 cents per share in the latest quarter, versus estimates it would lose 38 cents. Subscription revenue grew nicely and ad revenue—in part as the company has experimented in that area—did well too.
But my gut tells me that today’s 20% + spike on this news will be a one-day wonder. Competitive pressures remain. Further, this gets us back most of the way to a downgraded assessment of P’s full value in the $8 / share range.
If I’m wrong, I’m wrong—but now that we are nearer to break even, my gut tells me to take the money today and RUN and focus on stuff I have a much better sense of and level of confidence in.
Chris Temple, The National Investor, www.nationalinvestor.com, 224-308-2587, May 4, 2018