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With the release of iOS 7 from Apple (NASDAQ:AAPL), Pandora (NYSE:P) faces its most serious challenge to date, and one that could spell real trouble for the company's future. While there are several factors to consider, Pandora is in a position where it must use its recently raised $325 million to grow if it is to survive. While Apple has a superior song library and 42% of iTunes users are also on Pandora, the original music service is compatible with Google (NASDAQ:GOOG) Android and other devices.

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In the video below, I discuss a variety of the relative strengths and weaknesses of Pandora - particularly given the changing nature of the market - and look at why I am a seller, despite the extraordinary performance the stock has enjoyed year-to-date. The stock may have a $4.5 billion market cap, but without positive earnings and a new serious competitor, shares are simply too expensive.

Disclosure: I have no positions in any stocks mentioned, and no plans to initiate any positions within the next 72 hours. I wrote this article myself, and it expresses my own opinions. I am not receiving compensation for it (other than from Seeking Alpha). I have no business relationship with any company whose stock is mentioned in this article.

Source: Pandora Must Grow Or Perish