Here's what drove Pandora's monster year

Shares of the streaming-music company absolutely minted money for investors in 2013. Can it continue to bring home results in 2014?

By Motley Fool Investor Beat Dec 31, 2013 4:33PM
Shares of the streaming personalized internet radio service Pandora (P) exploded this year, up nearly 200% since the beginning of 2013.

Here, Motley Fool Million Dollar Portfolio associate advisor David Meier discusses some of the ways that Pandora has been strengthening both its business and its balance sheet, which have led to an increase in value for shareholders.

Despite this, the naysayers are still prevalent.
Many point to Pandora still not making a profit, or increased competition from sources such as Apple's (AAPL) iTunes Radio or Spotify as reasons to be bearish on the stock. However, David notes that while many investors were afraid when iTunes Radio first came out, the initial dip in Pandora's listenership when iTunes Radio launched is now long a thing of the past, which means that thus far, Apple's offering here hasn't proved to be a serious threat.Caption: A music lover uses the Pandora app to listen to internet radio
Credit: © Richard Levine/Alamy

Now that Pandora has laid the business-strengthening framework this year for future growth, David says he wouldn't be at all surprised to see very meaningful revenue growth for Pandora in 2014. With the infrastructure and sales force the company has built, he sees Pandora as poised to go out and capture more advertising dollars away from terrestrial radio, which could be a very meaningful driver for shareholders in the year ahead.

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