Investors are getting nervous about Pandora. The stock fell 24% today as several analysts cut their rating on the stock after the company forecast higher-than-expected losses.
Citigroup analyst Mark Mahaney was among them, citing “mobile monetization challenges” as costs increase faster than revenue. “As a speculative buy, with no profitability track record and no near-term profitable outlook, Pandora always carried very little margin for error – and now there’s error,” he tells clients.
Pandora’s stock lost more than a fifth of its value in after-hours trading late Tuesday as investors expressed concerns that the company’s revenue isn’t keeping up with its expense growth. Pandora reported a fourth-quarter loss that was more than twice as big as a year earlier and said its losses in its first quarter would be as much as ten-times what analysts had been expecting.
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Addicted to Mobile Posted: 12 Jan 2012 11:37 AM PST Mobile usage continues to increase rapidly and shows no signs of stopping. According to a comScore study, nearly 90 million Americans accessed their email from their mobile phones in 2011, a 28% increase from the previous year.
This represents a whopping 19.5 million additional mobile email users. In November 2011 nearly 40% of all mobile users in the U.S. were accessing email on their phones, and over 75% of smartphone users took advantage of the service. The majority of these users accessed their mobile email on a daily basis.