Pandora's Biggest Critic Doubles Down: Says Short The Stock, It's About To Be Clobbered By Rivals

BTIG analyst Rich Greenfield is reiterating his short call on Pandora (P) this morning, saying that it’s about to get walloped by a number of rivals entering the space.

He thinks the stock, which is trading at $13, is worth $5.50 and here’s why:

  • Clear Channel is about to relaunch iHeartRadio, which will have Pandora like features in addition to all of its radio stations.
  • Spotify already has 1.4 million users, and it’s not slowing down any time soon.
  • Pandora lacks a social element unlike Spotify and Turntable.fm. It’s trying to add one on, but Greenfield says you can’t just bolt that on to an application that isn’t inherently social.
  • Sirius XM is about to launch a personalised radio feature, too.

Greenfield also speculates that Pandora’s users like the service less and less the more they use it citing a survey from Bridge Ratings LLC. Here are the charts from Bridge Ratings showing dissatisfaction growing over time for Pandora users.

Pandora satisfaction chart

Photo: BTIG

Pandora satisfaction chart

Photo: BTIG

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