Is Pandora (P) music to your ears? (October 26, 2015)
I want to look at Pandora ( NYSE:P ) here. Last week there was a report that their user growth stalled on Friday, which is the first time that’s happened. So the conjecture was, and I’m sure it’s true, that it was because of Apple Music, that wonderful thing. Then the stock traded way down, as low as 11.50. Then just today Macquarie (I don’t know that research firm very much but I’ve been reading their stuff for years), I think they’ve got a good point here, particularly when that stock’s up 5 percent today. They upgraded the stock, they had and still have a $19.00 price target on it. They think that Apple Music is just not going to have the impact on Pandora ( NYSE:P ) that the market has thought that it would. I personally tend to agree.
I can honestly tell you I will never subscribe to Apple Music. I bought what I bought. If I want something else I’ll buy more of it. I really don’t need to have to have a bunch of music, that I’m not interested in, stuck in front of my nose. But that’s just me. I just don’t think that I’m the only old guy that feels that way. I think, in fact I can tell you now, Kevin O’Leary, Mr. Wonderful, thinks the same thing. He thinks it’s a bust, I do too. That just really gives me a more bullish bias for Pandora ( NYSE:P ), at least as a short-term trade. Longer-term, I can’t look at this and say, “Oh, it’s going up to a new high.”
But what I can tell you is this, if you want to go long this stock, and use 11.50 as your reference for a stop, I think you’re going to do just fine. I don’t mean put the stop at 11.50, that’s a stop that’s just begging to get executed. Instead, put it a little bit lower, 11.45, 11.40, something like that. And if the stock does in fact trade down to a new low you don’t want to be involved in this stock anyway. But I think you’re going to make some money on this trade.
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