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Is Pandora Media Inc (NYSE: P) Ready For A Turnaround?

Pandora Media Inc (NYSE: P) recently reported its Q4 2017 results, which beat analyst expectations by a significant margin, causing the stock to rally higher. However, despite the positive EBITDA, the music streaming service still posted a net loss for the quarter and the year. The main question on most investors’ mind is whether the company is ready to generate profits.

The company reported that total listening hours declined to 5.3 billion hours as opposed to the previous year’s 5.38 billion total. Active listeners also declined to 74.7 million users, which also put a damper on the company’s improved financial performance. These declines are largely attributable to the stiff competition from premium ad-free music services such as Spotify and Apple Music.

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There was a general belief among investors and analysts that Pandora was dying due to the stiff competition in the music streaming industry, but this was refuted by the fact that Pandora reported revenue growth in the latest quarter. The company is currently transitioning from being largely dependent on advertising revenues to a subscription-based model, which has started paying off, given that it is a more reliable business model.

Our combined analysis of the company indicates that the company reported $395.3 million in total revenue, which was much higher than Q3 revenues and is a good sign for the company’s future performance.

The company’s quarterly growth rate has been largely stable, but in negative territory and this is expected to continue into the next quarter. It might be a while before Pandora becomes profitable. The company’s annual growth rate has also been in the red since Q4 2015 and this is expected to extend into this year as well as next year.

The company is likely to garner more monthly average users (MAUs) as it refines its free terrestrial radio offering allowing users to listen to music on demand and also streamlines the backend processes for its premium service.

Based on the technical data and associated charts at the time this article was written, Stock Traders Daily has provided detailed trading plans, with integrated risk controls, to its clients. These plans will change in real time as prices move. To receive an update or to review the detailed trading plans associated with this data please review our Real Time Trading Report for Pandora.

Technical Summary

Term →Near Mid Long
Rating Strong Neutral Weak
P1 5.36 4.08 2.22
P2 4.78 3.73
P3 0 5.53 5.27
Triggers may have already come
Support and Resistance Plot Chart for P

Long Term Trading Plans for P

March 19, 2018, 8:45 am ET

The technical Summary and associated Trading Plans for P listed below will help you make important timing decisions for your trades. This data is based on our proprietary analysis for P. In addition we offer Market Timing Models and Stock Filters in the links above which may increase the proficiency of the decisions you make.

P - (Long) Support Plan

Buy over 3.73 target 5.27 stop loss @ 3.47.
The technical summary data tells us to buy P near 3.73 with an upside target of 5.27. This data also tells us to set a stop loss @ 3.47 to protect against excessive loss in case the stock begins to move against the trade. 3.73 is the first level of support below 5.12 , and by rule, any test of support is a buy signal. In this case, support 3.73 is being tested, a buy signal would exist.

P - (Short) Resistance Plan

Short under 5.27 target 3.73 stop loss @ 5.53
The technical summary data is suggesting a short of P as it gets near 5.27 with a downside target of 3.73. We should have a stop loss in place at 5.53 though. 5.27 is the first level of resistance above 5.12, and by rule, any test of resistance is a short signal. In this case, if resistance 5.27 is being tested, a short signal would exist.


P Long Term Analysis


P EPS Analysis

P Revenue chart

Blue = Current Price
Red= Resistance
Green = Support

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