It’s been a (really) rough day for Pandora shareholders. The stock has cratered over 30% today after the online radio streaming company reported ugly 3Q results.
One Wall Street analyst wasn't caught by surprise. Hedgeye Internet & Media analyst Hesham Shaaban has long been skeptical about the stock. It was added to his Best Ideas Short list on 12/22/2014. Since then, Pandora is down 29%.
Here’s an update from Shaaban following results:
“Pandora's 3Q release was pretty ugly. P wound up missing 3Q revenues after guiding high on the last print, and cut 2015 revenue guidance back toward the low end of its initial 2015 guidance release, which it had raised twice this year. More importantly, P may have telegraphed that it expects to lose Web IV through both its Ticketfly acquisition and its pre-1972 settlement. Once the Web IV decision is out, P could be a single digit stock.”
***Click here to read Shaaban’s research note earlier this week heading into the print.
Check out the slide below on Pandora. It's from his “Quarterly Internet Best Ideas Call” he hosted last week with institutional subscribers where he reviewed major themes and incremental developments for a slew of his best idea longs/shorts including Yelp!, LinkedIn and more.
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