Pandora Media Inc. (NYSE: P)
Pandora News
Shares of Pandora Media Inc. (P) took off after the market closed yesterday on news that they received a favorable decision regarding royalty fees handed down from the government board reviewing the situation. After the news release analysts following the company were quick to issue upgrades, which further fueled the rally. FBR & Co. upgraded P to market performs from underperforms with another upgrade from Albert Fried & Co. JP Morgan also issued an upgrade following the royalty fee news with a new price target of $30, up from the original $25. When you combine a positive news report with multiple upgrades you have a recipe for a strong price move in the stock and that is what happened here with P. Miriam Gottfried at Market Watch reported,
“On Wednesday, the royalty board said the rate for non-subscription services would rise to 17 cents per 100 plays from a current rate of 14 cents. That wasn’t the sizeable decrease Pandora had requested–but copyright holders had asked for a 79% increase. And it was still a lot better than the worst-case outcome, for which investors seemed to have been bracing.” MarketWatch
P Technicals
Investors loved this news as shares skyrocketed over 15% in the post market session. Shares have been on a bit of a wild ride this year but with this news there should be a better chance for strong upside potential. Currently, shares are trading just over $15 a share, which is just below the 200-day moving average at $16.71. That is going to act as a big resistance level until P can make a move over that important level. As of the close yesterday shares are down a big 25% for the year but are looking to cut that number down as shares are ripping in the post market. Look for support to come in at the 50-day moving average currently sitting at $14.44 and the $15 level will provide support as well. Resistance will be met at the 200-day moving average and at the open of the gap down a couple months ago on 10/22/15, which is at $19. Analysts currently have an average price target of $18.41.
Company Profile
Pandora Media, Inc. provides an internet radio service in the United States, Australia and New Zealand. It offers a personalized experience for listeners to listen radio on smartphones, tablets, computers and car audio systems and Internet-connected devices. The company has developed a form of radio that uses intrinsic qualities of music to initially create stations that then adapt playlists in real-time based on the individual feedback of each listener. Its service is available through various distribution channels and it has developed applications for smart phones, such as iPhone, phones running the android operating system, the windows phone and for tablets, including the iPad and tablets running the android operating system. The company was founded by Timothy Westergren and Jon Kraft in January 2000 and is headquartered in Oakland, CA. (MarketWatch)
