Pandora Pops Then Drops, Cycles Pushing Lower
Shares of Pandora Internet Radio (P) initially popped 11% to $5.42 yesterday when the company reported an increase in subscription revenue of 63% as well as an increase in subscribers of 25%.
However, by the time the market opened on Thursday, the stock had flipped over to trade down 11% to as low as $4.32. That’s not surprising, given its negative earnings per share of ($0.21), compared to estimates of ($0.07). The stock was also downgraded by Morgan Stanley and other analysts.
Looking at the chart below, Pandora has seen continual negative cyclical patterns, suggesting lower prices. This coincides with a challenging competitive environment. The stock’s current market cycle suggests a decline into mid-March, likely testing its recent low near $4. The cycles are designated by the gray semicircles at the bottom of the chart.
Pandora (P) Chart with Weekly Bars
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