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Pandora (P) is upped to Buy with $24 price target at Morgan Stanley, the team calling the...

Pandora (P) is upped to Buy with $24 price target at Morgan Stanley, the team calling the company "The Netflix of Radio," and "the best pureplay exposure to the secular shift of radio dollars to online channels." Pandora trails only Facebook and Google in monthly consumer usage, notes Morgan. Shares +4.9% premarket.
Comments (8)
  • Will Rocco the Pandora perma-bull be vindicated?
    1 Jul 2013, 11:41 AM Reply Like
  • He'll hate the NFLX tagline.
    1 Jul 2013, 04:21 PM Reply Like
  • Good one!
    2 Jul 2013, 03:21 PM Reply Like
  • Didn't know being called the NFLX of radio was a compliment. But Morgan Stanley said it so it must be true! Why anyone would want to buy these internet companies that have no track record of making money is beyond me. Makes for quite the spectacle though.
    1 Jul 2013, 01:06 PM Reply Like
  • So one week everyone is saying apples new service will crush pandora but now that risk has dissapeared? I'm still not convinced on this one.
    1 Jul 2013, 01:34 PM Reply Like
  • I like Nokia Music.
    1 Jul 2013, 01:44 PM Reply Like
  • Not for nothing but everyone is treating Apple like a tech company because of how it has generated its revenue and its name sake. You have to recognize though that Apple is also in the media business. Look at the billions in revenue that iTunes does. In the beginning the transition will be slow, but once people recognize the power of iTunes Radio, you'll likely see users converting in masses.

     

    Sure critics say that users have taken the time to build and refine their stations, however I don't think that is going to be a sticking point if the service is of similar quality. Anyway, creating new playlists with iTunes radio would not be difficult if Apple makes it so that you can choose stations based on your iTunes library.

     

    Not to mention the fact that iTunes I'm sure will link their store with the radio which will push revenues even further. Long rune winner is clearly Apple, Pandora investors will pretend like everything is good for a while. Maybe the stock will hit the low, maybe even mid 20's. When that happens, put options and covered calls (if you dare to actually own the stock and not take profits).
    1 Jul 2013, 04:28 PM Reply Like
  • Disagree, P will see 40 within the next 2 years in spite of these latecomers (Apple, Google). P dominates internet radio (market share >70%) and we are beginning to see early indications of their success monetizing mobile (P's mobile numbers have seen truly explosive growth) both in ad based and an acceleration of subscriber additions. iTunes Radio will certainly grab some of the future market, in particular the largely untapped international markets that P is ignoring for now, but I think this is going to be Apple's "Zune moment" -- very late to the party, nothing new, no buzz, in fact I expect somewhat negative press since this is so blatantly a copy of a great idea that P had 10 yrs ago.
    3 Jul 2013, 06:26 PM Reply Like
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