Friday, June 17, 2011

Keep Adding Pandora $P, It Has Magic

You already know what I think of P.

Remember the analyst who slammed the AMZN ipo years ago when it had revenue of $16 million and $6 million loss? Most thought Amazon would never be profitable and would bankrupt itself as it grows.  Ooops, what were they thinking?

Keep buying Pandora and ignore today's analyst with the sell rating and $5.50 price target on P. His sell rating was the major catalyst that spooked traders into dumping the stock.

Perhaps you may want to go experiment with Pandora yourself for a few days and see if the company has vast potential.  I personally think P is the next Netflix (NFLX) but it could be more.  Pandora has amazing technology and is extremely easy (and convenient) to use.  It may not be a profitable business at this time but increased popularity will drive mass adoption, and then they can shove ads down the users' throats, a la Facebook.  (Their subscription model can also be tweaked to increase subscribers. ) Everything changes if Pandora can increase their user base from 100 million to 300-400 million (like Facebook).

The way to play P? Keep buying small on dips for now, then back up the truck as the company shows you the path to profitability in the weeks and months ahead.

There's magic at Pandora.  Just open the box.

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