Pandora Media Inc (NYSE:P) Happiness Was Short Lived?
Pandora Media Inc (NYSE:P) had posted a impressive though short lived surge on the browsers last week, following the news that it was ranked above its competitors like Apple Inc. (NASDAQ:AAPL) backed iTunes Radio and other online radio stations by rating agency Piper. The listing which is linked to user preferences assumed added importance, since it was drawn up based on real time tweets and resultant online chatter about the programs that various online radio stations were able to generate on the micro blogging site Twitter.
Online Popularity Fails to Enthuse the Markets
All that buoyancy in the $5.21 billion broadcasting majors stock was shorted by end of the week, when it posted a 1.5% decrease in its market value during trading on November 22, and was down by a significant 7.3% during trading last week. But analysts feel the investor community should not feel despondent about the short term weakness in this online radio program provider.
Rating Agencies Think Otherwise
Canaccord Genuity and RBC Capital Mkts are two rating agencies which are very positive about the prospects of the stock of Pandora Media Inc (NYSE:P) over the next few months. They both have reiterated their bullishness about the stock by assigning a Buy and Outperform rating and upping their price target of the stock to $35. They have reasoned that in spite of increased competition from the likes of Google (NASDAQ:GOOG) through its fledging “Google Play Music All Access service” and steadily growing Apple’s iTune Radio, the online streaming radio broadcasting station Pandora Media Inc (NYSE:P) is well positioned to further extend its dominance and gain additional market share. The market analysts point out the teething troubles which have beset the latest entrants while Pandora has continued to increase its user base among the mobile user community