Is Pandora the "Netflix of Radio"?

Although we don't believe in timing the market or panicking over market movements, we do like to keep an eye on big changes -- just in case they're material to our investing thesis.

What: Shares of online music streamer Pandora Media (NYSE: P  ) have popped today by as much as 10% following an analyst upgrade.

So what: Morgan Stanley boosted its rating on Pandora from "equalweight" to "overweight," while assigning a $24 price target. The analyst believes that Pandora is the best way to capitalize on the shift to online radio, since Pandora is a "pure play" on the sector.

Now what: Analyst Scott Devitt characterizes Pandora as the "Netflix of Radio," saying the company offers a disruptive form of content consumption. Even as rivals continue to enter with competing streaming services, Pandora remains the market leader and its expansion into other areas like automobiles may strengthen its position, according to Devitt. One key distinction is that the bulk of Pandora's revenue comes from advertising, while Netflix has no advertising revenue.

Interested in more info on Pandora? Add it to your watchlist by clicking here.

The Motley Fool's chief investment officer has selected his No. 1 stock for this year. Find out which stock it is in the special free report: "The Motley Fool's Top Stock for 2013." Just click here to access the report and find out the name of this under-the-radar company.

Read/Post Comments (0) | Recommend This Article (1)

Compare Brokers

Fool Disclosure

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: 2519043, ~/Articles/ArticleHandler.aspx, 9/29/2016 3:12:48 AM

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...

Today's Market

updated 5 hours ago Sponsored by:
DOW 18,339.24 110.94 0.61%
S&P 500 2,171.37 11.44 0.53%
NASD 5,318.55 12.84 0.24%

Create My Watchlist

Go to My Watchlist

You don't seem to be following any stocks yet!

Better investing starts with a watchlist. Now you can create a personalized watchlist and get immediate access to the personalized information you need to make successful investing decisions.

Data delayed up to 5 minutes

Related Tickers

9/28/2016 4:02 PM
P $14.41 Up +0.27 +1.91%
Pandora Media CAPS Rating: **