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Monday, June 27, 2011

Pandora Media - The Next Big Internet Stock

The first wave of internet revolution took place back in 2000 with superstars like Amazon,com (AMZN) and  Although both internet giants were traded in single digit after the internet bubble burst, both are now today traded in triple digits with share prices at $201 and $487 respectively.  If you missed the opportunity in investing either of those internet superstar, now maybe a good time again with the emerging of social media brings new players.  

One of the companies worth looking at is Pandora Media (NYSE:P), which provides automatic music recommending service - the social media in the music entertainment space.  Since going public in mid-June and reached $26 per share, stock has dropped as low as $12 per share and is now trading at $16.52 per share.  With trading volume now at only a fraction of its IPO day volume, the all the hypes probably have evaporated so it should be saver to buy the stock.  

Although the company has yet turn a profit, it is growing rapidly with annual revenue at $137 million ending January 2011, up from $55 million in 2010 and $19 million in 2009.  Pandora has 90 million registered users in April and growing with over 50% market share of the internet radio market.  Three months earlier there were 80 million registered users which translates to about average 3 million new registered users per month.  At the current growth rate, we could see another internet superstar in making.


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