We will be hosting a call outlining their Best Idea Short thesis on Pandora Media (P). P’s user retention issues and waning TAM create a precarious setup into 2015. Further, its monetization strategy will only make this worse.
Join us for our call Thursday, January 15th at 1:00pm EST.
KEY TOPICS WILL INCLUDE
- Users to Decline in 2015: P’s waning TAM isn’t large enough to compensate for its heightened attrition issues.
- Tug of War: P will need to continue increasing ad load to drive much of its revenue growth, which will exacerbate its attrition issues.
- Lofty Consensus Revenue: P would require a considerable acceleration in ARPU growth to hit 2015 estimates. If P falls short in 2015, 2016 would be unattainable.
Hesham Shaaban, CFA