Showing posts with label CCCL. Show all posts
Showing posts with label CCCL. Show all posts

Monday, January 9, 2012

Deals with carmakers should speed its reach into traditional radio

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.