Pandora Stock | Will We Finally See An Uptrend?

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Pandora Stock RisesPandora (P) has struggled over the past year. Year over year, the stock is currently down more than 50%. While tons of experts have weighed in on the cause of the fall, the overall opinion seems to be that Pandora (P) is a victim of its own success (click here to read more on what I mean by that). Nonetheless, Monday morning, the company’s stock was on a strong uptrend. So, today we’ll talk about why Pandora’s stock is trending upward today, whether or not the trend is likely to last on a long term scale, and we’ll talk a bit about the competition in the streaming music space. So, let’s get right to it.

What Seems To Be The Cause Of The Pandora (P) Stock Uptrend?

While there’s no clear way to say “this is exactly and solely the cause of the uptrend” In any case in the stock market. In this case, the brunt of the cause seems to be clear. Here’s what’s going on…

Is The Uptrend Likely To Last?

Yes! Pandora (P) is a great company and their stock has been falling for more than a year now. Believe it or not, in my opinion, it’s one of the few stocks that are currently under-valued in the market. With that said, as the online streaming radio industry continues to grow and Pandora (P) continues to take the lion’s share of the audience, the company’s stock has no where to go, but up!

The Biggest Hurdle For Pandora (P) Now

It’s obvious that consumers use online streaming radio and that Pandora (P) is the current leader. In fact, I’m currently listening to Pandora (P) radio as I write! However, now that the company is working to make artists happy, the next big hurdle is going to be competition. With big players like Youtube (GOOG) and Spotify (SPTF) in the market, Pandora (P) is no longer the only giant; and I’d imagine they’re going to have to think incredibly hard about building a strategy to maintain their market share.

What Are Your Thoughts?

Are we seeing a long-term uptrend in the making or just a blip on the chart? Why do you think that? Let me know in the comments below!

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2 COMMENTS

  1. Personally, I think Spotify will end up hurting Pandora. Spotify can do everything Pandora can do and more. They give the radio option, while still being able to play individual albums and tracks. And they pay the royalties to the artists.

  2. The street still does not understand Pandora. It is missing where a tremendous amount of value lies. Pandora’s Music Genome Project has been in constant development for approximately the last 15 years. This project breaks down songs into over one hundred different categories similar to DNA sequencing along with the information stored regarding user preferences and history. This is where the self generating playlists come from for the user. Every year the value of this project goes up exponentially. This technology has a value of well over ten billion dollars when attached to a larger project like Facebook. I feel the stock price will eventually reflect this whether or not Pandora is ever bought out. That being said, I will not be surprised if Pandora makes a new all time high.

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