Investors are cheering as Pandora Media reported better-than-expected earnings, sending shares higher after hours. The company also raised guidance to top Street estimates and CEO Joseph Kennedy expressed bullishness on Pandora's mobile monetization prospects. That may seem like reason to be optimistic about Pandora's future, but the company's net loss for the quarter actually widened, despite its big gains in top-line revenue. Evan and Andrew break down the numbers and assess Pandora's long-term business.

If you are looking for something different, then you should check out our new free report: "The Motley Fool's Top Stock for 2012." In it, our chief investment officer identifies his favorite company for the year. To access the report before the rest of the market catches on, click here -- it's absolutely free.

Andrew Tonner has no positions in the stocks mentioned above. Evan Niu has no positions in the stocks mentioned above. The Motley Fool has no positions in the stocks mentioned above. 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.