Tune in to Pandora
Despite many skeptics, the Internet music company continues to make progress.
By Mike Cintolo, Cabot Top Ten Trader
That's led to a lot of skepticism (and a big short interest, more than 35 million shares at last count, or seven days of volume), but it hasn't hurt the company itself. In fact, Pandora just reported another great quarter, with management forecasting more good things to come.
Not only did revenue top targets and grew north of 50% again, but all key metrics (listener hours and active users both +35%, paid subscribers +114%, mobile listener hours +47%, mobile revenues +101%) looked great.
Moreover, it's important to note that, right now, Pandora is the largest radio station in the country, accounting for 7.33% of all radio listening in the first quarter, up from 5.86% a year before.
Perhaps most encouraging, as a percent of revenues, Pandora's royalty costs declined nicely, which helps dampen fears that the firm will never exit the red.
All of this isn't to say there aren't risks -- Google (GOOG) recently announced a competing service, although it relies far more on paid subscriptions than Pandora.
And there are endless rumors Apple (AAPL) will enter the market as well. Either of these two gorillas could become an issue. But to this point, none of the many competitive threats have dented this company one bit.
The stock was crushed from its opening IPO price of $26 back in mid-2011 to its low of $7 at the market low of November last year. But since then, the buyers have been in control.
Most recently, the stock etched a nice, tight eight-week zone before breaking out earlier this month and then gapping up after earnings, reaching as high as $19 ... before pulling back sharply to close down on the day.
That's not ideal action, but given the market environment, it's not a major negative, either. If you're game, you could buy some around here, or on further weakness, with a stop near $14.
More from TheStockAdvisors.com
MSN Money on Twitter and Facebook@msn_money and @topstocksmsn
Copyright © 2014 Microsoft. All rights reserved.
Fundamental company data and historical chart data provided by Morningstar Inc. Real-time index quotes and delayed quotes supplied by Morningstar Inc. Quotes delayed by up to 15 minutes, except where indicated otherwise. Fund summary, fund performance and dividend data provided by Morningstar Inc. Analyst recommendations provided by Zacks Investment Research. StockScouter data provided by Verus Analytics. IPO data provided by Hoover's Inc. Index membership data provided by Morningstar Inc.
Pipeline owners are making big profits on oil coming from North Dakota's Bakken fields. But a lot of natural gas continues to be flared due to low prices.
VIDEO ON MSN MONEY
Top Stocks provides analysis about the most noteworthy stocks in the market each day, combining some of the best content from around the MSN Money site and the rest of the Web.
Contributors include professional investors and journalists affiliated with MSN Money.
Follow us on Twitter @topstocksmsn.