And if rumor is not confirmed (more that 90% chance ... check his FSLR rumor and dozens of similar rumors during just 2013) will Pandora drop to the levels before the rumor?
If the rumor is confirmed Pandora will probably jump on it. Again, I do not think this is going to happen. I will be very surprise if Carl Icahn is as smart as the longs and that he can also see that Pandora has potential even all metrics shows that its growth is rolling over.
Stop comparing Pandora with NFLX. Try MySpace (if you still remember what that was) and Angie's list instead.
Do you remember how Apple or Amazon or XYZ were able to encroach on NFLX as Apple did with Pandora? No. Because they could not.
I just hope longs have stops at $22-23. If Pandora falls to that level, most likely the music is over and you need to grab the chairs while you can. Same goes for shorts. Do not get involved!
PS. Shorts get slaughtered, longs get slaughtered, Carl Ican will make money.
Even if Icahn is involved, the report stated he already took his position in P which would substantiate the run up in share price. He wants to sell and make a nice profit in his position and leave the shares with the new bagholders.
Businesses of big companies overlap all the time. It is not unusual to be long Apple and short Pandora or vice verse, or be short both or long both. That overlapping can also create some nice arbitraging opportunities (not in case of Pandora and Apple).
What is unusual is for Carl Icahn to take investment in Pandora at current levels. When Pandora drops and Carl thinks that there is a couple of puffs in that butt left ... then he may step in ... with some combination of bond purchases. But now ... not likely.
If I am wrong about Carl Icahn, I will be very happy: there is something I have not seen yet.