Pandora soars on Facebook's results, Goldman note

Like several other Internet stocks, Pandora (P +12.3%) is getting a lift from Facebook's very strong Q4 report, which included the disclosure mobile ads accounted for 53% of the social networking giant's Q4 revenue. Pandora received 73% of its ad sales via mobile in its October quarter.

Also helping: A Goldman note arguing out-of-the-money Pandora call options are a good bet, given they place very low odds on shares doubling over the next year (something Goldman considers a possibility).

12.8% of Pandora's float was shorted as of Jan. 15.

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Comments (11)
  • Quoth the Raven
    , contributor
    Comments (2063) | Send Message
    First, a gold downgrade before the precious metal has its best month in years. Now, Pandora is going to DOUBLE? Oh, Goldman Sachs, I could never leave you - you're like my Labrador retriever - you know not what you do, and you make me laugh.
    30 Jan 2014, 11:22 AM Reply Like
  • manicdvln
    , contributor
    Comments (1545) | Send Message
    Never seen so much blatant manipulation in any company as Pandora. The CEO was an ex investment banker and has no experience in music. Insiders have been constantly selling this stock while analysts keep pumping it.


    The stock is owned 106% by institutions with leveraged buying, which means this stock is manipulated until they sell then collapses back to 10$.
    Goldman owns Pandora shares like most of the other analysts who have pumped this garbage. Never have I see any analyst say to buy a stock on an options trade based on the assumption.
    12% short interest is insignificant in any stock but looks like they will force these shorts to cover to appreciate the shares even further until reaching a climax where there is no longer any shares to accumulate and eventual collapse of the stock which I am guessing will happen after ER Feb 5 since analysts have all upped their targets BEFORE the facts.
    So this may be one spectacular pump and dump.
    30 Jan 2014, 11:23 AM Reply Like
  • Quoth the Raven
    , contributor
    Comments (2063) | Send Message
    I'm buying puts on this "upgrade".
    30 Jan 2014, 11:29 AM Reply Like
  • Stewpified
    , contributor
    Comments (129) | Send Message
    What's the Raven Quothing today?
    Might as well short more, boys. Stubbornness, obstinance and emotions in general are a great ally in the stock-picking game.


    You know Rave, you wouldn't be the first investor in history who was wrong. What's the problem with admitting it and just moving on? P doesn't know you're short, and it doesn't know I'm long. It's going to do its thing, and I'm pretty sure I won't be taking my profits at the top--and that's OK.


    Pay attention to the chart, because the fundies aren't making anyone any money in this stock or AMZN or any other ticker with an "astronomical" evaluation. Eff Goldman. P doesn't know who they are either. But man, oh man, P just put in a great base from October to January, and was barely down during many big down market days over the last three weeks.


    I just closed out a 2-year EBAY position at break-freaking-even. And I can tell you I LOVED that 18 p-e when I went long.


    None of us know more than Mr. Market. You gotta stop thinking you're smarter than him and listen to his messages (i.e. read the chart!).
    30 Jan 2014, 03:06 PM Reply Like
  • Value Mine
    , contributor
    Comments (223) | Send Message
    Lol I thought my Bear Call Spread at 36/37 expiring tomorrow was pretty safe until today :(


    It's crazy to me how much attention people pay to analysts. This gains 12% today because someone with an intensly vested interest tells us the calls are underpriced?


    The only thing this tells me is that Goldman is likely the buyer I have been selling all my calls to. Hope reason takes over once the momentum folks have their fun.


    Seriously... who is buying today at $37.00 that wasn't buying at $33 yesterday? Is it a better deal today because of a Goldman note? Wow. Fun either way. GL All!
    30 Jan 2014, 01:09 PM Reply Like
  • dgulick
    , contributor
    Comments (2324) | Send Message
    <<who is buying today at $37.00 that wasn't buying at $33 yesterday?>>


    Shorts covering after $FB beat maybe? \sarcasm


    <<Goldman is likely the buyer I have been selling all my calls to>>


    30 Jan 2014, 01:20 PM Reply Like
  • santacruz05
    , contributor
    Comment (1) | Send Message
    ummm.. incase you did not notice, Pandora accounted for 75% of the mobile revenues of Facebook.... do you honestly think Pandora's q4 release is going to be bad?
    30 Jan 2014, 01:22 PM Reply Like
  • Ron Reed
    , contributor
    Comments (346) | Send Message
    No. Re-read the statement. P got 73% of its rev. from ads. FB got 53% of its rev. from ads. Neither one got any money from the other. The statement was just drawing the conclusion that ad revs are up for FB so the quasi-logical conclusion is that P will have better earnings as well.
    31 Jan 2014, 05:57 AM Reply Like
  • dgulick
    , contributor
    Comments (2324) | Send Message
    Actually you're both wrong, FB got 53% of its rev, and P got 73% of last quarters rev, from ads *via mobile*. The *via mobile* is what is crucial here, while FB revenue jumped 28% q/q, mobile ad rev jumped 38% q/q! Seasonally high 4th quarter, but still. If P sees a similar jump, it will be a substantial beat! That is what got the shorts nervous (along with the Goldman comment). P reports next Wed.
    31 Jan 2014, 12:13 PM Reply Like
  • trollipop
    , contributor
    Comments (53) | Send Message
    You shorts should run for cover now while you can! Pandora is gonna report even higher listener hours and this stock is gonna go to 100 in no time!
    31 Jan 2014, 03:55 PM Reply Like
    , contributor
    Comments (3) | Send Message
    You will be the only loser here if you don't ride this stock up. Sure it will come down, but not even close to that time. Lots of upside.
    1 Feb 2014, 01:22 PM Reply Like
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