For better or worse, shares of growth darling Pandora Media (NYSE:P) just keep on rising.
Having rallied nearly 160% over the past 12 months, despite posting consistently slowing growth metrics, the market apparently believes the long-term outlook for Pandora is as rosy as ever. That certainly could be the case.
However, to realize its full potential, Pandora will need to compete in the increasingly competitive streaming radio market, which, from the looks of it, is set to add another powerful tech company into its ranks.
Amazon.com, enter stage right
According to reports, e-commerce titan Amazon.com (NASDAQ:AMZN) is preparing to enter the streaming music service.
The company is apparently in the midst of talks with record labels and plans to bundle the coming service into its highly popular Amazon Prime delivery and streaming video service. More broadly, Amazon has a reputation as a fierce competitor in any market it enters, and its circling this space says a number of interesting things about some of the key dynamics in the streaming radio space.
In the following video, tech and telecom analyst Andrew Tonner looks at the news and what it could mean for the likes of Pandora.