Why Pandora Media Inc. Shares Popped

Is Pandora's jump meaningful? Or just another movement?

Jan 6, 2014 at 5:10PM

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 Pandora Media Inc. (NYSE:P) jumped more than 14% Monday after the Internet radio specialist both released December audience metrics and announced a new automotive advertising campaign.

So what: First, Pandora says active listeners and listener hours for December each rose 13% year-over-year to a record 76.2 million and 1.58 billion, respectively. This, in turn, translated to an 8.6% listening market share for Pandora in U.S. radio, up from 7.58% at the same point last year.

What's more, Pandora announced it will begin rolling out in-car advertising solutions later this month, with several big names already on board, including BP, Ford, State Farm, and Yum! Brands' Taco Bell.

And why not? Pandora is already available in nine of the country's 10 best-selling passenger vehicles, and more than 4 million users have activated the service through their vehicles' native integration so far -- a 244% increase over the past year.

Now what: The renewed growth of Pandora's user base is encouraging, especially considering it indicates the worrisome launch of Apple's iTunes Radio last September may not bear as much a negative impact as skeptics had originally feared. And remember, despite growing listener hours by only 17% year over year in the most recent quarter, Pandora has done a great job growing its top line, which rose 50% over the same period to $181.6 million.

Adding new automobile ads into the mix should serve as a solid complement to those efforts, and could provide just the push Pandora needs to finally achieve sustained long-term profitability. When that happens, patient Pandora shareholders should be rewarded handsomely.

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Fool contributor Steve Symington owns shares of Apple and Ford. The Motley Fool recommends Apple, Ford, and Pandora Media and owns shares of Apple and Ford. Try any of our Foolish newsletter services free for 30 days. We Fools don't all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. The Motley Fool has a disclosure policy.

4 in 5 Americans Are Ignoring Buffett's Warning

Don't be one of them.

Jun 12, 2015 at 5:01PM

Admitting fear is difficult.

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Our team of analysts wrote down every single word Buffett and Munger uttered. Over 16,000 words. But only two words stood out to me as I read the detailed transcript of the event: "Real threat."

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KPMG advises we're "on the cusp of revolutionary change" coming much "sooner than you think."

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Yet according to one J.D. Power and Associates survey, only 1 in 5 Americans are even interested in this technology, much less ready to invest in it. Needless to say, you haven't missed your window of opportunity. 

Think about how many amazing technologies you've watched soar to new heights while you kick yourself thinking, "I knew about that technology before everyone was talking about it, but I just sat on my hands." 

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David Hanson owns shares of Berkshire Hathaway and American Express. The Motley Fool recommends and owns shares of Berkshire Hathaway, Google, and Coca-Cola.We Fools don't all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. The Motley Fool has a disclosure policy.

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