Pandora Investors: 3 Key Areas to Watch

In the following video, Isaac Pino and Jeremy Bowman team up to review important issues investors need to watch regarding Internet radio company Pandora.

The first issue is growth. Pandora currently boasts a membership in the 60 million range, claims a 7% market share, and has yet to really break into the automotive or consumer electronics market. Currently, Pandora is almost doubling year over year; can it sustain such growth rates?

Second, there's revenue. Pandora uses an advertising business model rather than a subscription model as Sirius XM Radio does. For all its members, Pandora hasn't turned much profit. If Congress passes the Internet Radio Fairness Act, that could help improve profit margins.

Finally, Isaac and Jeremy consider international markets. Spotify came to the U.S. from Europe, but Pandora hasn't penetrated the European market. It does have a foothold in Australia and New Zealand, but potential markets in other overseas markets remain untouched.

Pandora has won millions of devotees among music fans but few supporters on Wall Street. The online jukebox has put up dramatic growth numbers in its listenership and seems to be redefining the way we consume music, a transformation that's only likely to grow. But high royalty rates and competition from all corners threatens to silence this upstart before it ever grabs the microphone. Can Pandora translate success with its listeners into a prosperous business model that will deliver for investors? Learn about the key opportunities and potential pitfalls facing the upstart radio streamer in The Motley Fool's new premium research report. Not only will you get the kind of insight normally found from high-priced Wall Street brokerages, but you'll also receive a year's worth of free updates. All you have to do is click here now to activate your subscription to this invaluable investor's resource.


Read/Post Comments (0) | Recommend This Article (0)

Comments from our Foolish Readers

Help us keep this a respectfully Foolish area! This is a place for our readers to discuss, debate, and learn more about the Foolish investing topic you read about above. Help us keep it clean and safe. If you believe a comment is abusive or otherwise violates our Fool's Rules, please report it via the Report this Comment Report this Comment icon found on every comment.

Be the first one to comment on this article.

Sponsored Links

Leaked: Apple's Next Smart Device
(Warning, it may shock you)
The secret is out... experts are predicting 458 million of these types of devices will be sold per year. 1 hyper-growth company stands to rake in maximum profit - and it's NOT Apple. Show me Apple's new smart gizmo!

DocumentId: 2200485, ~/Articles/ArticleHandler.aspx, 12/20/2014 7:00:35 PM

Report This Comment

Use this area to report a comment that you believe is in violation of the community guidelines. Our team will review the entry and take any appropriate action.

Sending report...


Advertisement