Pandora (P) Higher as CEO Kennedy Says Fundamentals Strong, Confident in Gaining Market Share
Pandora (NYSE: P) is ticking slightly higher following CEO Joe Kennedy speaking on CNBC this morning.
In part, Kennedy reiterated that mobile monetization growth was strong and he expects the metric to continue performing well into the next quarter and 2013 as a whole.
He still believes the royalty rates Pandora pays are high, no surprise there.
On Apple (Nasdaq: AAPL) entering the market, Kennedy simply said "only Apple knows what Apple is going to do." He emphasized that Pandora has met every competitor that has entered that market head-on and is continuing to grow market share in the U.S. (For an example of competitors not meeting Apple head-on, look to Research In Motion (Nasdaq: RIMM) and, to a lesser extent, Nokia (NYSE: NOK)).
Kennedy noted that Pandora surpassed the 7 percent radio market share in the U.S. for the first time ever, with 62 million listeners tuning in for the month.
Pandora lowered its outlook based on the unique position its in related to ad spend. Kennedy said the ad spend is back loaded past the first month or two of 2013, with things expected to shape up thereafter. Overall, the fundamentals of Pandora remain strong.
Shares are down 16 percent on the session.
In part, Kennedy reiterated that mobile monetization growth was strong and he expects the metric to continue performing well into the next quarter and 2013 as a whole.
He still believes the royalty rates Pandora pays are high, no surprise there.
On Apple (Nasdaq: AAPL) entering the market, Kennedy simply said "only Apple knows what Apple is going to do." He emphasized that Pandora has met every competitor that has entered that market head-on and is continuing to grow market share in the U.S. (For an example of competitors not meeting Apple head-on, look to Research In Motion (Nasdaq: RIMM) and, to a lesser extent, Nokia (NYSE: NOK)).
Kennedy noted that Pandora surpassed the 7 percent radio market share in the U.S. for the first time ever, with 62 million listeners tuning in for the month.
Pandora lowered its outlook based on the unique position its in related to ad spend. Kennedy said the ad spend is back loaded past the first month or two of 2013, with things expected to shape up thereafter. Overall, the fundamentals of Pandora remain strong.
Shares are down 16 percent on the session.