Why Pandora Media, Inc. Stock Got Tuned Out Today

Is this meaningful? Or just another movement?

Jul 25, 2014 at 2:20PM

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: Investors were hitting the mute button today on Pandora Media (NYSE:P) stock today, which was down as much as 14% after its second-quarter earnings report came out last night.  

So what: The headline numbers were actually solid as the Internet radio provider saw revenue grow 38% to $218.9 million, in line with estimates, while adjusted EPS was even with a year ago at $0.04, but beat estimates by a penny. Still, investors seemed concerned by sequentially slowing subscriber growth and listenership as June listener hours per day were down from 55.8 million in May to 53.7 million. The company attributed the slide to seasonality as the summer months may bring users away from listening devices, but Pandora also lost share of U.S. radio listening going from 9.13% to 8.9%.

Now what: The online DJ has been a mystery to Wall Street ever since its IPO back in 2011. The stock has been highly volatile falling as low as $7 and climbing as high as $40 even though its results have been steady all along as it consistently posts strong revenue growth and near breakeven profits. The music space is a fast-changing one, and Pandora faces a number of the threats, but the company's advertising growth is surging in key areas as mobile ad revenue jumped 51% and local ad dollars increased climbed 144%. The music service even raised its full-year EPS guidance from $0.14-$0.18 to $0.16-$0.19, a move that's usually met with cheers from Wall Street. I'd blame today's slide on Pandora's sky-high valuation, which was perhaps deserving of a correction, rather than anything unseemly in the report.

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Jeremy Bowman has no position in any stocks mentioned. The Motley Fool recommends Pandora Media. The Motley Fool owns shares of Pandora Media. Try any of our Foolish newsletter services free for 30 days. We Fools may not 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.

A Financial Plan on an Index Card

Keeping it simple.

Aug 7, 2015 at 11:26AM

Two years ago, University of Chicago professor Harold Pollack wrote his entire financial plan on an index card.

It blew up. People loved the idea. Financial advice is often intentionally complicated. Obscurity lets advisors charge higher fees. But the most important parts are painfully simple. Here's how Pollack put it:

The card came out of chat I had regarding what I view as the financial industry's basic dilemma: The best investment advice fits on an index card. A commenter asked for the actual index card. Although I was originally speaking in metaphor, I grabbed a pen and one of my daughter's note cards, scribbled this out in maybe three minutes, snapped a picture with my iPhone, and the rest was history.

More advisors and investors caught onto the idea and started writing their own financial plans on a single index card.

I love the exercise, because it makes you think about what's important and forces you to be succinct.

So, here's my index-card financial plan:


Everything else is details. 

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