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Shares of Pandora (P -9.2%) spike lower before being halted off a Bloomberg headline saying...

Shares of Pandora (P -9.2%) spike lower before being halted off a Bloomberg headline saying Apple plans to launch an Internet radio service.
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Comments (9)
  • Herr Hansa
    , contributor
    Comments (3083) | Send Message
     
    Internet radio has been available through iTunes for many years. What could Apple be doing that is new? Pandora is not without competitors, but this move is ridiculous.
    25 Oct 2012, 03:42 PM Reply Like
  • Whitehawk
    , contributor
    Comments (3129) | Send Message
     
    Agreed, ridiculous move. Apple may catch wind off the ad revenue that Pandora enjoys, but how much?
    25 Oct 2012, 03:49 PM Reply Like
  • Stephen Faulkner
    , contributor
    Comments (8915) | Send Message
     
    This is based off of a bloomberg "refreshed" story from 9/7 that was already known.

     

    P gets the damage from this. SIRI blip is a freak out buying opp that appears to be quickly returning to normal levels.

     

    Watch P to fight the $8 mark as resistance on this refresh of the news.

     

    SIRI has a moat, satellites / hybrid capability. P and other internet radio companies have little to no moat vs. new and other players. Very different spaces. Suggest reading my article. Disagreements abound, and that is fine, but it's obvious that P investors, at least some of them, share similar fears and are ready to cash out or protect themselves from further losses.

     

    http://seekingalpha.co...
    25 Oct 2012, 03:56 PM Reply Like
  • Whitehawk
    , contributor
    Comments (3129) | Send Message
     
    SIRI is trading where it was in 2001 when many first lost money on it. P is showing strong trends in ad revenue, second to goog in mobile ad rev. (I don't own either, but if I had to pick, it would be P)
    25 Oct 2012, 04:15 PM Reply Like
  • Stephen Faulkner
    , contributor
    Comments (8915) | Send Message
     
    "SIRI is trading where it was in 2001 when many first lost money on it."

     

    Comments like that make it hard to take what is said after, seriously. Completely different set of circumstances 11 years ago, and you know that :)

     

    If you don't own either I'd assume you don't believe in either. That's fine, but if you feel both are a bad investment who is going to hold a gun to your head and make you pick? You're basically saying both are bad but P is "less bad." Why so? Don't say strong trends in ad revenue... they've been unable to secure enough advertising to cover costs. If I take in $100 million and spend $90 million I am doing far better than the guy who takes in $10 billion and spends $10.1 billion.
    25 Oct 2012, 04:38 PM Reply Like
  • Whitehawk
    , contributor
    Comments (3129) | Send Message
     
    I will say that pricey subscription services (such as SIRI) are a declining trend. People are figuring out they can get acceptable content access through low or no cost services that feature ads or a'la carte. Pricey content cost is not keeping pace with quality - and people are beginning to respond to that, especially when they have so many choices.
    25 Oct 2012, 04:48 PM Reply Like
  • Stephen Faulkner
    , contributor
    Comments (8915) | Send Message
     
    "I will say that pricey subscription services (such as SIRI) are a declining trend."

     

    The problem with this statement is that Sirius XM's subscriber numbers and churn rates disprove this opinion.

     

    Unfortunately you are also making assumptions as to what "people" deem "acceptable" for content and you also make assumptions that "people" will, once they find advertising based services, prefer ads over paying a monthly fee.

     

    "Pricey content cost is not keeping pace with quality - and people are beginning to respond to that, especially when they have so many choices."

     

    Again is this merely opinion or can you prove this with numbers? Such a statement should be supportable by pointing out declining subscribers, decreases in the conversion rate for SIRI, increases in churn, etc. But unfortunately the numbers speak otherwise, stable conversion rate, lower churn / stable churn on top of a price increase, and overall increasing subscriber base (to the tune of nearly 10% increase this year, approaching 2 million additional subscribers).

     

    I'm not trying to be difficult with you... but you need to back up your opinions with some facts to give them a bit more "oomph."
    25 Oct 2012, 04:54 PM Reply Like
  • johnjakubowski
    , contributor
    Comments (170) | Send Message
     
    Well, here's some 'oomph'. WTF is Apple thinking.
    First off, P is not radio. It's a disservice to call the HGP radio.
    Secondly , what is Apple thinking they're doing ? They have radio you can stream through iTunes. They even implemented Genius. If it actually worked and you weren't inundated with iTunes ads and buy buttons, they might have a product.
    But again, P is totally different. They make mad money on mobile adv and truly provide value. For Apple to try to recreate is ridiculous. They will also more than likely lose a large base that is loyal to P and iTunes will suffer.
    Doesn't anyone remember Ping ( which tanked )
    Bad bad move by Apple - itll take the shares down even further if they committ.
    Just noise now, but
    Long P
    25 Oct 2012, 05:44 PM Reply Like
  • Stephen Faulkner
    , contributor
    Comments (8915) | Send Message
     
    I'll agree with you there... not sure AAPL can pull this off properly and likely a bad move on their part.
    25 Oct 2012, 05:46 PM Reply Like
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