BTIG Makes Negative Comments on Pandora (P)

BTIG analyst Richard Greenfield made negative comments on Sell-rated Pandora (NYSE: P) Monday, questioning listener data and ad dollar shift from terrestrial radio.

"We see effective advertising as fitting into two broad buckets. One is buying reach/frequency and the other is buying highly targeted demographics. The promise of the Internet, particularly mobile, was the ability to serve highly targeted advertising to the right person at the right time and place (essentially what Google and Facebook are trying to accomplish). Unfortunately, Pandora, despite being a digital/mobile service does not fulfill this promise. It operates on partially flawed data. This makes it a poor alternative to the Google, Facebook, Twitters of the world," said Greenfield.

"Pandora has set its sites instead on going after the market share of traditional radio advertising, where you are buying local reach – often delivered in context by a DJ. However, as you dig into Pandora’s claims of reach versus traditional radio you start to realize the comparisons are “Apples and Oranges” and should not be utilized by an informed brand/agency," he added.

http://Read more: http://www.btigresearch.com/2014/04/21/in-pandoras-world-the-knicks-are-better-than-the-yankees-because-they-score-more-points-each-game/#ixzz2zYGPk0hl

For an analyst ratings summary and ratings history on Pandora click here. For more ratings news on Pandora click here.

Shares of Pandora closed at $27.02 yesterday.

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