Pandora (P) Shares Pressured Following Downgrade, Negative Blog Mention

Pandora (NYSE: P) shares are lower amid a downgrade from SunTrust Robinson Humphrey to Neutral today, and as the stock was highlighted in Barron's last weekend as having potential downside of 20 percent.

Barron's noted that Pandora operates more like a radio versus on-demand services like Spotify, but the radio model might be put on the back burner as users has access to virtually unlimited music whenever they want to listen to it.

With the company's latest quarter, Pandora placed lower metrics on Apple's (Nasdaq: AAPL) Apple Music service, which was heavily promoted with its debut in late June. The company, at the time, said it naturally expected ebbs and flows of subscribers.

Pandora shares trading for around 111 times FY16 EPS expectations, while that drops to 32 times with FY17 estimates as more analysts expected robust growth in 2017.

Bulls on the stock are positive on Pandora's plans for international expansion and a potential Spotify-like service, while others note that Pandora is still exposed to the volatile advertising market versus a company like Netflix, which doesn't rely on advertising dollars for revenue growth.

Shares of Pandora are down nearly 8 percent.

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