Report Places Pandora Media Inc (NYSE:P) Fourth In Mobile Revenue

Posted In Technology - By Rachelle Stevens On Thursday, July 31st, 2014 With 0 Comments

Dallas, Texas 07/31/2014 (ustradevoice) – Pandora Media Inc (NYSE:P), an Internet radio service provider, now ranks the fourth in terms of mobile ad share and its opportunities in the segment are rising, according to analysts at Barrington Research. The analysts went on to say that Pandora’s mobile shares is only dwarfed by that of the Internet giants Google Inc (NASDAQ:GOOG), Facebook Inc (NASDAQ:FB) and Twitter Inc (NYSE:TWTR).

Pandora is considered a direct beneficiary of mobile advertising and the rise in mobile spending is expected to continue boosting its revenue. As such, analysts Jeff Houston and James Goss noted that the stock is an attractive play because of its promise in the still-nascent mobile advertising market. No wonder they rate the stock an “outperform” with a price target of $41 per share.

Revenue from mobile

The company realized $166 million in mobile ad revenue, which was 76 percent of the total revenue of $219 million realized in 2Q. Given the opportunities in mobile ad revenue, the analysts see that as a reason to be bullish on the stock of Pandora Media Inc (NYSE:P) in spite of the challenges that have been raised concerning the company. For example the concerns over its ability to compete against giants Apple Inc (NASDAQ:AAPL), Amazon.com Inc (NASDAQ:AMZN) and Google, which also offer music streaming services.

Local market

According to the analysts, Pandora Media Inc (NYSE:P) is not only gaining a mark in mobile advertising, but the company also has potential in local advertising whereby it is giving local radio stations a run for their dollar. Besides hiring away top ad marketers from the local radio stations, Pandora is also increasing its local ad salespeople, and all these are happening as the company improves its share of local radio listening.

The analysts said Pandora Media Inc (NYSE:P) is currently focused on 37 local markets, which already account for 20 percent of its ad revenue. However, they noted that the company faces pressure on profitability because of its heavy spending on marketing and products, but they believe those investments will pay off handsomely in the future.

About the Author

- Rachelle Stevens covers politics for US Trade Voice, including the 2013 mayoral race. During the 2012 presidential election, Rachelle traveled the country to tell the stories of voters in early primary battlegrounds and swing states. Rachelle's work has been honored by the New York Press Club, Capitolbeat, and the Associated Press Broadcasters Associations of New York, Connecticut and West Virginia.

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