Pandora shares took a pounding on Friday as Apple is reportedly in negotiations with record labels to license content for a Pandora-esque music-streaming service.
That's more bad news for a company that already had a lot of it. Its advertising-supported model isn't yet profitable, and its prospects aren't great given the competition. Sirius XM, Spotify, Google's YouTube, traditional radio, and Apple's iTunes all provide meaningful alternatives for audiophiles.
Apple's latest move is just another reminder to Fool analyst Anand Chokkavelu that he recommends Pandora's service but not its stock. See more in the following video.
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Anand Chokkavelu owns shares of Apple and Sirius XM. Andrew Tonner owns shares of Apple. The Motley Fool owns shares of Apple and Google. Motley Fool newsletter services recommend Apple and Google. 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.