With the release of iOS 7 from Apple (AAPL), Pandora (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 (GOOG) Android and other devices.
P data by YCharts
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.