For this week, Pandora��s (NYSE:P) shares have been rockin�� a sweet tune. They are up over 22%.
Why the excitement? First, Pandora got a?nice boost on Monday when analysts at Needham & Company put a ��buy�� recommendation on the stock, with a price target of $13. Keep in mind that it’s already at $12.20.
Next, Pandora put out a glowing press release at the 2012 Consumer Electronics Show in Las Vegas announcing that the company now has 125 million registered users and controls about 68% of the market for Internet radio.
But perhaps the most notable development is Pandora’s traction with automakers. It currently has 23 partnerships with companies such as Ford (NYSE:F), Toyota (NYSE:TM), Acura and Kia.
This is important since Pandora is really focused on disrupting the traditional radio market, which is a $13+ billion opportunity. There’s no doubt that mobile devices from?Apple?(NASDAQ:AAPL) and Google?(NASDAQ:GOOG) are key drivers.
So far, Pandora has about 4% of the traditional radio market. But with its aggressive partnership strategy, that share is likely to expand quickly.
Despite all this, investors need to be cautious. Pandora��s stock could quickly go from hot to cold.
Tom Taulli runs the InvestorPlace blog?IPOPlaybook, a site dedicated to the hottest news and rumors about initial public offerings. He also is the author of?��All About Short Selling��?and?��All About Commodities.��?Follow him on Twitter at?@ttaulli. As of this writing, he did not own a position in any of the aforementioned securities.
Why the excitement? First, Pandora got a?nice boost on Monday when analysts at Needham & Company put a ��buy�� recommendation on the stock, with a price target of $13. Keep in mind that it’s already at $12.20.
Next, Pandora put out a glowing press release at the 2012 Consumer Electronics Show in Las Vegas announcing that the company now has 125 million registered users and controls about 68% of the market for Internet radio.
But perhaps the most notable development is Pandora’s traction with automakers. It currently has 23 partnerships with companies such as Ford (NYSE:F), Toyota (NYSE:TM), Acura and Kia.
This is important since Pandora is really focused on disrupting the traditional radio market, which is a $13+ billion opportunity. There’s no doubt that mobile devices from?Apple?(NASDAQ:AAPL) and Google?(NASDAQ:GOOG) are key drivers.
So far, Pandora has about 4% of the traditional radio market. But with its aggressive partnership strategy, that share is likely to expand quickly.
Despite all this, investors need to be cautious. Pandora��s stock could quickly go from hot to cold.
Tom Taulli runs the InvestorPlace blog?IPOPlaybook, a site dedicated to the hottest news and rumors about initial public offerings. He also is the author of?��All About Short Selling��?and?��All About Commodities.��?Follow him on Twitter at?@ttaulli. As of this writing, he did not own a position in any of the aforementioned securities.
