It Was A Rough Friday For Pandora On Wall Street
April 28, 2014 at 3:56 AM (PT)
It was a "Black FRIDAY" (4/25) for tech stocks on WALL STREET last week, but none took it harder than PANDORA MEDIA, which fell 16.6% to $23.51, the webcaster's largest single-day decline in more than a year and lowest closing price since SEPTEMBER.
THE SAN JOSE MERCURY-NEWS reports PANDORA, "announced earnings THURSDAY afternoon, and managed to beat expectations with a year-over-year sales gain of nearly 70%. The company's projections for current quarter and full-year performance underwhelmed investors and analysts, however, as PANDORA said it would continue plowing its growing revenue stream into marketing, with a possible international expansion on the horizon."
"Our investment curve is higher than the Street expected," CFO MICHAEL HERRING told BLOOMBERG NEWS. "It is a lot of work to provide the best music service available."
THE MERCURY-NEWS adds, "even while investors pushed PANDORA's market cap lower than $5 billion, analysts were split on the company's prospects. AARON PRESSMAN pointed out that 20 analysts covering the company suggest buying the stock, while only two have a 'sell' rating or equivalent. CREDIT SUISSE analyst STEPHEN JU wrote FRIDAY that he is 'optimistic on (PANDORA's) runway for growth,' while ALBERT FRIED analyst RICH TULLO wrote, 'We still think PANDORA faces a significant growth rate decline and we think investors need to depart the bus and seek alternate modes of transportation'."