Based on the aggregated intelligence of 180,000-plus investors participating in Motley Fool CAPS, the Fool's free investing community, online radio company Pandora Media (P) has received the dreaded one-star ranking.
With that in mind, let's take a closer look at Pandora and see what CAPS investors are saying about the stock right now.
Pandora facts
|
Headquarters (founded) |
Oakland, Calif. (2000) |
|
Market Cap |
$2.4 billion |
|
Industry |
Broadcasting |
|
Trailing-12-Month Revenue |
$427.1 million |
|
Management |
Chairman/CEO Joseph Kennedy Founder/Chief Strategy Officer Timothy Westergren |
|
Return on Equity (average, past 3 years) |
(21.6%) |
|
Cash/Debt |
$89.0 million/$0 |
|
Competitors |
Sirius XM |
Sources: S&P Capital IQ and Motley Fool CAPS.
On CAPS, 66% of the 626 members who have rated Pandora believe the stock will underperform the S&P 500 going forward.
Just yesterday, one of those Fools, joshmessages, succinctly summed up the Pandora bear case for our community:
High royalty fees along with new competition on an almost monthly basis makes the 'mostly free' business almost impossible to profit from.
On the free side there is IHeartRadio with seemingly less [ads], HD listening, and straight forward free listening with limited skips.
On the pay side there is Rdio and Spotify which dominate the space and are both growing surprisingly fast.
In the middle there is Pandora which doesn't seem to know whether it wants to be a free service or pay service. ...
There is no road to profit for Pandora.
