P (Pandora Media Inc.) has been making bearish trends within the past few years and if you're still riding the emotional roller coaster you may want to consider getting off the ride if you don't know how to handle it.
Acquisitions and Mergers
Along with a history of lawsuits, Pandora acquired Rdio in 2017 for $75 million in efforts to expand their business, revenue, and listeners. This acquisition may have been helpful since they reported in their second quarter that listening hours have improved and rose to 5.66 billion from 5.52 million.
On May 29th, 2018, Pandora improved their advertisements by acquiring Adswizz, a specialized audio advertisement program for $145 million.
On the other hand, Pandora rejected a large merge deal this year from Liberty Media for $3.40 billion. This large offer may have been tempting as to solve their financial problems, but anyone could imagine that this may have been slightly embarrassing since Pandora was once a prominent music company.
What Are Shareholders Looking For?
Shareholders are looking for more listening hours and more subscribers with Pandora. Pandora is in a very competitive field and with their current situation of bad financials investors are turned away from their lack of gains. Some investors compare Pandora with APPL (Apple Music) and SPOT (Spotify) as a better investment, yet Pandora is an affordable stock that may have more potential with swing trades if performed correctly.
Shareholders are hoping Pandora will continue to beat quarterly estimates and exceed their expectations for building more revenue.
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Disclosure: I/we have no positions in any stocks mentioned, and no plans to initiate any positions within the next 72 hours.