Wednesday, June 15, 2011

Will There Be Profits in Pandora's Box?

Investment U submits:

By Justin Dove

With more than 90 million registered users in the United States, chances are you or someone you know uses Pandora (NYSE: P) as a music service or smartphone application.

Pandora?s opening on June 15 resembled a roller coaster ride. The stock surged to nearly a 50 percent gain just after the markets opened? Then, when it looked like it might follow in LinkedIn?s (NYSE: LNKD) path, it leveled off. By closing, Pandora fell back to earth for a gain closer to 9 percent of its $16 starting price.

There are varying opinions on how good of an investment Pandora is? so let?s look under the hood?

NYSE: P ? The Undisputed Market Leader in Online Radio

Pandora has shown strong growth over the past three years, according to its income statement. Revenues went from $19 million through 2008 to $55 million after 2009 and last year exploded


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