P

Pandora Media Inc

TMT


Presented:09/13/2018
Price:$9.71
Cap:$2.59B
Current Price:$52.18
Cap:$14.16B

Presented

Date09/13/2018
Price$9.71
Market Cap$2.59B
Ent Value$2.38B
P/E RatioN/A
Book Value$0.34
Div Yield0%
Shares O/S266.32M
Ave Daily Vol8,299,120
Short Int20.74%

Current

Price$52.18
Market Cap$14.16B
Pandora Media, Inc. engages in the provision of a music discovery platform through internet radio services. It offers a personalized experience for listeners to listen radio on smartphones, tablets, computers, car audio systems, and Internet-connected devices. The company was founded by Timothy Westergren and Jon Kraft in January 2000 and is headquartered in Oakland, CA.

Publicly traded companies mentioned herein: Alphabet Inc (GOOG/GOOGL), 
AT&T Inc (T), Facebook Inc (FB), Liberty Media Corp-Liberty Sirius XM (LSXMA), Pandora Media Inc (P), Sirius XM Holdings Inc (SIRI), Snap Inc (SNAP), Spotify Technology SA (SPOT), T-Mobile US Inc (TMUS) 

Highlights

The presenter is long shares of Pandora Media (P), despite its recent run up, and sees strong secular trends (music streaming, unlimited phone plans, smart speakers, etc.) and operational improvements causing sub declines to inflect and turn positive. Additionally, P’s deals with record labels are being re-negotiated, and this could cause margins to expand and help the company reach profitability within ~2 years. The presenter was previously short the stock, but is now long given the clarity around these negotiations. Given the large opportunity for music streaming and P’s nascent programmatic ad business through acquiring AdsWizz, the presenter feels P’s ~$2.5B valuation is misaligned with the size of the market. Using a DCF with a mid-teens top line CAGR, the presenter believes the company could be worth $5B ($20/share) over the next 12mo.

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Idea Discussion

Commentor 1 - 2 weeks ago

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