Sweet Music From Pandora Media

Posted on by The INO.com Team

Let me begin by saying that I listen to Pandora (NYSE:P) streaming music from both my iPhone and iPad. I have created several music channels to listen to my favorite music which can be pretty eclectic, ranging from the Beatles to Chinese folk music. I use the free version of Pandora, and am constantly amazed at the breadth of their music repertoire.

Did you see my latest video on Pandora?

Last Monday, I featured Pandora (NYSE:P) in my mid-day video report. I warned against letting the market fool you with the three quiet days it was experiencing. I also said that I was still bullish and expected the market to go higher.

One of the stealth tactics that Pandora Media (NYSE:P) uses, like a lot of other internet-based companies, is offering a free version of their service. Eventually, they are hoping that many of the free users out there will upgrade to their paid version without advertising. I think this is taking place at a rather speedy conversion rate and I expect revenues for Pandora to continue to grow. Listening to accessible, customized music is becoming more and more a part of our everyday lives. I like the product Pandora Media puts out and I think it has a very positive future to either keep growing or be acquired by a larger company (Think Apple?).

On the technical front, you never argue with new highs. The market looks ready and capable to keep moving higher after yesterday's big move, to challenge my target zones of $30 -$32 a share.

Pandora Media has not had the kind of publicity that FaceBook (NASDAQ:FB), Twitter (IPO coming soon?) or Netflix (NASDAQ:NLFX) has had recently. I suspect that this is going to change now that Pandora is moving higher and getting on more analysts' radars.

I'm very proud that our Trade Triangles picked up a major buy signal in Pandora Media on January 14th of this year at $11.15.

As long as Pandora Media keeps growing and all of our Trade Triangles are aligned, I am staying committed to the long side of this stock.

If you'd like to add your thoughts on Pandora Media (NYSE:P) or anything else, please feel free to leave your comment below this posting.

Thanks again for your support and business,

Adam Hewison
President, INO.com
Co-Creator, MarketClub

6 thoughts on “Sweet Music From Pandora Media”

  1. Congrats on your LONG play on P. As far as fundamentals are concerned P, which has never made a profit, now faces ITUNES Radio, and will be negotiating new royalty contracts at much higher prices. However, due to the easy money policy that was definitely evident today, Bernanke has and continues to create a stock market bubble that may go even higher than the one that burst in March 2000. P is part of that wave.

    1. James,

      Thank you for your feedback and kind words. The fundamentals on Pandora don't look great but Pandora which is up 5% as I'm writing this. I'd rather go with the timing and our trade triangle technology than the fundamentals.

      Once again thank you for participating in the conversation.

      All the best,

      Adam
      Adam Hewison
      President, INO.com
      Co-Founder of MarketClub.com

      1. Adam, I really don't mean to belittle your technical "Trade Triangle" but any LONG position was a big winner this year due to the easy money policy of the Federal Reserve. However, when one takes a look at the unbelievable appreciation in value of stocks this year like P, FB, TSLA, NFLX just to name a few, I'm pretty confident most investors would agree that the Federal Reserve has created another stock BUBBLE that will ultimately burst in time. Any rationale investor can easily see that the aforementioned companies are not worth their respective market capitalizations, but they sure have been a good Momentum play. The ultimate question is when is it time to trade out of these stocks. Now P has gone from $9.49 on January 1, 2013 to a new all time high of over $27 today. That's a real nice gain. Regardless of what the "Trading Triangle" says, I personally would take some money off the table here.

    1. Ray,

      Thank you for your feedback and comment. Breakouts can occur over long-term trend lines which I think are very important they can also happen over pivot pointsand also over to the points. If you haven't seen our Traders Whiteboards series there is a whole commentary on that very subject.

      Once again thank you for participating in the conversation.

      All the best,

      Adam
      Adam Hewison
      President, INO.com
      Co-Founder of MarketClub.com

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