Shares of Pandora Internet Radio (P) initially popped 11% to $5.42 yesterday when the company reported an increase in subscription revenue of 63% as well as an increase in subscribers of 25%. On the surface, this appeared to be good news for the stock…
However, by the time the market opened on Thursday, the stock had flipped over to trade down 11% to as low as $4.32.
That’s not surprising, given its negative earnings per share of ($0.21), compared to estimates of ($0.07). The stock was also downgraded by Morgan Stanley and other analysts.
Looking at the chart below, Pandora has seen continual negative cyclical patterns, suggesting lower prices. This coincides with a challenging competitive environment.
The stock’s current market cycle suggests a decline into mid-March, likely testing its recent low near $4. The cycles are designated by the gray semicircles at the bottom of the chart.
Pandora (P) Stock Chart with Weekly Bars
Visit the askSlim website for more on our approach to using market cycles to analyze stocks.
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