Yesterday, 10:28 AM
- On Friday: Sirius XM Holdings approach of Pandora board noted / Pandora +13%; reportedly open to talks with Sirius XM involving sale
- Analyst James Cakmak ideates an Amazon (AMZN +2.1%) combination representing greater long-term potential for Pandora's (P +1.6%) customer and business prospects than a rumored Sirius XM Holdings arrangement.
- Notes a prospective stock deal would equate to approximately 1% of Amazon's overall market capitalization and the value Amazon could derive from various potential integrations (Alexa, Prime) of the Pandora service.
- Related (October 12): Amazon introduces Amazon Music Unlimited streaming service
Fri, Dec. 2, 4:29 PM
- Earlier – Pandora +13%; reportedly open to talks with Sirius XM involving sale
- Bloomberg updates on the development, suggesting Sirius XM Holdings chairman Greg Maffei had expressed new takeover interest for Pandora. Neither a price or a response by Pandora to the approach, however, have been issued.
- Liberty Media (NASDAQ:LMCA), Sirius XM Holdings (NASDAQ:SIRI) parent, had prior informally offered $15 per share terms in July.
- Pandora (NYSE:P) closes out the week with 16% gains, Sirius XM Holdings 5.6% losses on the situation.
Fri, Dec. 2, 9:56 AM
Tue, Nov. 29, 8:19 AM
- Shares of Pandora (NYSE:P) are riding a mention on CNBC Fast Money higher in early trading.
- The discussion on the show centered on the large amount of call buying late in yesterday's session.
- Nasdaq option report on Pandora
- Pandora +5.19% premarket to $11.95 vs. a 52-week trading range of $7.10 to $16.23.
Wed, Oct. 26, 1:14 PM
- Pandora Media (NYSE:P) is 5.3% lower today after its Q3 earnings miss yesterday, and a few analysts take the opportunity to downgrade shares.
- Albert Fried dinged the stock two notches, lowering its rating to Underweight from Overweight. "Given the negative guidance, negative FCF, and convoluted business model we think Pandora is no longer a takeover target," says analyst Rich Tullo.
- A lull alone would still support a deal, he says, but burning cash while taking risks with the user base (potentially driving customers to iTunes or Spotify) makes it less attractive. He's got an $8 price target, implying 30%-plus downside from today's lowered price.
- FBR Capital also downgraded, to Market Perform, but with a $12 price target (vs. current $11.54). But Mizuho is sticking with a Buy rating (while lowering its target to $12 from $13) due to some positives from Investor Day: "While we like the long-term opportunity of subscription, proof will be in execution over the next few quarters."
- Nomura stayed Neutral and reiterated its $14 price target (21% upside from today), as management reiterated its ambitious growth targets and subscription initiatives. The Street will get more optimistic if Pandora can prove its $10/month product against fierce competition from Spotify, Apple, Amazon and YouTube, it said.
Wed, Oct. 26, 9:12 AM
Tue, Oct. 25, 4:26 PM
- Pandora Media (P -4.8%) is off another 7.6% after hours following a miss on top and bottom lines and below-consensus guidance in its Q3 earnings report.
- Losses narrowed on a GAAP basis to $61.5M from $85.9M. Adjusted EBITDA fell to -$6.6M from last year's positive $31.5M.
- Total listener hours grew about 5% from last year, to 5.4B. Active listeners fell, though, to 77.9M from 78.1M.
- Revenue breakout: Advertising, $273.7M (up 7.5%); Subscription and other, $56.1M (down 1.4%); Ticketing service, $22.1M (new, but up about 25% compared to Ticketfly's pre-acquisition results).
- Pandora's guiding to revenue of $362M-$374M in Q4, below consensus for $391.7M, and adjusted EBITDA of -$51M to -$39M. For the full year, it's forecasting revenue of $1.354B-$1.366B (below consensus for $1.4B), and adjusted EBITDA of -$140M to -$128M.
- Webcast to come at 4:30 p.m. ET.
- Press Release
Tue, Oct. 25, 4:04 PM
Mon, Oct. 24, 5:35 PM
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Mon, Oct. 17, 1:25 PM
- Pandora Media (NYSE:P) is down 3% as Bank of America downgrades the shares on a dim outlook for the company's achieving its five-year targets -- and what looks like too little, too late, on an on-demand subscription product.
- Analyst Nat Schindler lowered the firm's rating to Underperform from Neutral, and cut its price target to $9, from $14 -- implying nearly 28% more downside in shares from today.
- The share price is being supported more by acquisition speculation than by fundamentals, he says. The company will be hard pressed to double its revenues in five years (to hit $4B in 2020) and getting paying subscribers will be tough as competition has heightened: “Even with Pandora differentiating on auto playlist creation, we think it will be hard for Pandora to attract 10-15M paying subs, especially because switching users off other services that have invested time in building out their personal playlists will be extremely difficult,” he says, pointing to Spotify as well as Apple, Google, Amazon and Tidal.
- Meanwhile, Credit Suisse has lowered its price target on shares to $14, from $16. And Pacific Crest reiterated an Underweight rating.
Tue, Oct. 4, 1:27 PM
- Pandora Media (NYSE:P) is up 3.9% following an add to Goldman Sachs' Conviction Buy list based on high upside offsetting some risks.
- Analyst Heath Terry boosted his price target on shares to $19, implying just over 19% upside from today's higher price.
- Seeing "potential new revenues" and fully reflecting additional costs, he boosted Pandora's revenue estimates by 11% for 2017 and by 31% for 2018, and raised EBITDA estimates for 2018 by 115%.
- There's significant risks as the company launches new subscription models and transitions ad-supported business to direct label relationships, he notes. But “With premium radio, on demand, ad supported listening, ticketing, and growth in auto and home listening, we see multiple avenues" for it to achieve guidance (revenues of $4B by 2020, at a five-year compound annual growth rate of 28%).
Wed, Sep. 28, 4:47 PM
- With competition heating up with Apple for the future of digital music, Spotify (Private:MUSIC) is in advanced talks to purchase SoundCloud, reports the FT.
- SoundCloud's investors include Twitter (NYSE:TWTR).
- Spotify has 100M users globally, and this month hit 40M paying subscribers. Apple Music has 17M subscribers, and SoundCloud recently launched its own paid service.
- Interested parties include Pandora (NYSE:P).
Mon, Sep. 26, 11:27 AM
- Pandora Media (P -1.4%) has named LinkedIn's Nick Bartle its new chief marketing officer.
- Bartle has been VP of Member Marketing and Communications for LinkedIn over the past year, and had previously spent more than four years at Apple as senior director of marketing communications.
- He also had senior roles previously at BBDO and Goodby Silverstein & Partners working on digital, print and TV campaigns.
- The move is effective next Monday.
Thu, Sep. 15, 5:13 PM
- Pandora Media (NYSE:P) has just announced a direct licensing agreement with Warner Music Group, clearing the way for a $5/month subscription service.
- The company announced "Pandora Plus" this morning but didn't have all rights in hand -- likely giving up some leverage in the Warner deal.
- Earlier this week, the company reached direct deals with Merlin Network, Sony Music and Universal Music Group, keys to launching its revamped ad-free service.
- After hours: P +0.7%.
Thu, Sep. 15, 8:21 AM
- Pandora (NYSE:P) has launched Pandora Plus, a rebranded version of its $5-a-month Pandora One offering. It also has enhanced its free, ad-supported service.
- The release marks the beginning of a new era for Pandora, as the company will end 2016 with three tiers of service and an on-demand offering to compete with Spotify and Apple Music.
- P +1.6% premarket
Tue, Sep. 13, 1:04 PM
- Direct deals between Pandora Media (P -1.8%) and music labels -- Merlin Network, Sony Music (SNE -1.6%) and Universal Music Group (OTCPK:VIVHY -2.1%) -- should bring "enhanced subscription services" to market, the company says, an opportunity that the stock's cheerleaders have been waiting for.
- The company's headed for a $5/month radio-based product in the near term and a $10 on-demand product by year-end, says J.P. Morgan's Doug Anmuth, who reiterated an Overweight rating. "Though mgmt. didn’t comment on specific features, it indicated that the mid-tier product will have options users have requested, which we believe could include the ability to listen offline, skip tracks, & pick a limited number of songs directly," he writes. "P expects contribution margins to be in the 30-35% range (consistent w/industry economics), & that it will have multiple subscription tiers."
- The direct label deals preserve the economics of the core ad tier, says Piper Jaffray, which also reiterated its Overweight rating. The transition should "impact contribution margins near-term," but Piper expects the new functionality to "reinvigorate subscriber growth and help offset increased royalty costs," pointing to a "sizable" sub growth opportunity ahead.
- Previously: Pandora +4.2% as SunTrust's Peck upgrades to Buy (Sep. 12 2016)