Pandora Investors Listen to iTunes Radio, Buy More Pandora Shares, Set Record High
And now that iTunes Radio really is real, with yesterday’s debut of iOS 7, Pandora investors are even more confident.
Today the stock hit a record high of $27.50, before closing at $27.35. Perspective: As recently as last fall, the stock was barely hovering around $7.
I know better than to try to guess why shares move up or down. But I can point out things Pandora investors seem to have responded to in the recent past: They were probably very happy to see a strong earnings report in August, and they were probably happy that a few days ago the company hired Brian McAndrews, an exec with a strong ad background, to run the company.
And in a bit of self-perpetuating cheerfulness, they are ecstatic that a secondary offering is selling like Miley Cyrus tickets used to sell in her pre-twerking days.
I also know it is way, way, way too early to make any conclusions about iTunes Radio as a competitive product.
If Apple’s service does start taking listener and/or advertising share from Pandora, it’s not going to show up for a long time. Pandora has more than 70 million users, and a lot of them are going to need to learn about what Apple has to offer, and then start using it, in order to move the dial.