BTW, per your inane logic, I guess you recommend people should also avoid or be careful with AAPL, considering they have nearly 6B outstanding shares and over $50B in debt?
Just goes to show that you know absolutely nothing about leveraging and the benefits of it. Just because Pandora has zero debt doesn't mean they are managing the company and their financials in a beneficial way.
Have you even bothered to compare SIRI vs P over the past few years? Because it's not SIRI that anyone has to worry about, but rather Pandora that's fallen off of a cliff. You try to skew facts to fit your narrative and make false statements all the time regarding SIRI. That's indicative of fear, and rightly so, since SIRI is the company that knows how to make money, unlike Pandora.
You never cease to prove your ignorance of financial matters. The SiriusXM stock repurchase has gone quite well, contrary to your claim: shares have been reduced by over 1 billion (17%). At an average cost of $3.56/share over the buyback timeframe, the approximate cost of that buyback is around $3.8B, yet debt has not increased by nearly that much. So where is the cash coming from to buy those shares back? It's called positive cash flow from operations, and it's provided a huge amount of cash for the company to use to reinvest in shareholder value.
BTW, you may have missed the article that mentioned one of Pandora's senior executives that was handling the royalty panhandling measure defected. Guess where he went? To a company that has a solid business plan and is making tons of cash. I guess the stock based comps at Pandora weren't enough to keep him around. Either that, or he knows the royalty battle is already lost for Pandora, and he got out before the stuff hits the fan.
Would you care to source that 77% IR market share claim? You really need to update your information, and perhaps you'd start to see the light. The only reference I can see that comes anywhere close to the fairy tale number of 77% IR market share is an article from 2012, where P's estimated share was 71%. Articles from 2014 indicate it was down to 31% by that point, due to increased competition. Considering Spotify's gains over the last few years, as well as Apple music rolling out (if you think Apple is not a looming concern then you're more ignorant that I already thought), it's no stretch of the imagination to think that Pandora's share is down to the mid-20% level by now.
It's certainly paying off....for management, with their massive stock based compensation. On the other hand, long-term shareholders are stuck holding the bag with massive losses.
And you keep on snorting, douchenozzle. In case you haven't checked the price history, the only people making money on this POS the past 1.5 years are shorts. But keep on buying....shorts need someone to borrow from.
I'm not sure what you're putting up those nostrils, dom_us, but any company offering $8.5B for a company that has NEVER reported a profit, and barely breaks $1B in revenue per year is the pinnacle of ignorance.
How is a short seller a #$%$? You obviously don't understand market dynamics and investing if you think a short is a #$%$.
@ graderist: English much?
Your comments are all generalized banalities that have no basis in reality (this one in particular...I'm not sure what the heck it is).
Perhaps if you could construct a reasonable argument, your comments might be worth reading, but alas, you're just another blind pumper hoping for a buyout that will never happen for anything more than $10, and I highly doubt anyone spends even a dime to acquire this money pit of a company.
Many people are lazy and only half-listen to the CC's, so obviously management is going to paint a rosy picture. They know most people won't read the details in the SEC filings, so of course they make everything sound great on the call. Do you really expect them to say they can't afford expansion? Risk factors are disclosed in the SEC filings for a reason, not on a whim.
It's the same as Pandora management claiming on many CC's that they would soon break 100M users. Considering the average quarter-over quarter growth rate in active listeners since Q1 2014 is 1.1% and slowing considerably, a very aggressive estimation puts the goal of breaking 100M users sometime around Q3 2020 (doesn't sound "soon" to me). Considering the slowing growth and increased competition, I'd put my house and life savings on Pandora NEVER breaking 100M users. International expansion won't help either, as most competitors are already there and have the foothold and advantage over Pandora. Add in the fact that Pandora has been operating just in the US for almost 15 years and has never earned a profit, the pipedream of Pandora International ever happening or turning a profit is a futile one.
First of all, the CRB has nothing to do with royalites outside of the US, so that statement has no bearing on the so-called international expansion plans (they've been trumpeting expansion for years now, and so far they've only expanded to NZ and AUS, two small and meaningless markets) .
Secondly, Pandora talks the game on the calls, but their 10-K doesn't paints quite a different picture regarding international expansion:
"Offering our service outside of the United States involves numerous risks and challenges. Currently, the licensing terms offered by rights organizations and individual copyright owners in most countries outside the United States are prohibitively expensive. Addressing these issues in foreign jurisdictions may require a commensurate investment by us, and there can be no assurance that we would succeed or achieve any return on this investment."
Those statements seem to contradict the fluff on the CC. But if you want to believe in the fairly tale rather than face reality, that's on you.
LOL...Pandora can't even afford US royalties, let alone "global". As far as a dividend goes, maybe Pandora is expecting investors to pay a dividend to them, considering they've lost money every quarter before adding back expenses....expenses that are real and ridiculously high, unlike EBITDA.
By "the one we don't speak of", are you referring to Apple Music? You do realize that Apple Music only debuted on 6/30/15, so exactly one day of overlap with Q2. Not really a basis to judge the impact of a competing service.
I pretty much called it dead on yesterday. Revenue growth, but less than increase in expense (gotta love that stock based comp expense!).
Also, as I had suspected, listener metrics are flat sequentially, and barely growing YOY.
Keep in mind that this quarter's metrics and financials do not reflect any impact from Apple Music, as that was only released on 6/30. I fully expect next quarter's user metrics to be down, and unless they keep pumping out more and more commercials per hour, revenues will start to stall in accordance with declines in listener metrics.
It may go up short term based on the fluff management presents on the call, but I think the street and investors are wise to the sham that is Pandora, and lower lows are on the near horizon. They may beat on revenue, but I'll bet costs are still rising faster than revs, and listener metrics are going to be weak again, continuing the stalling growth pattern.
People are getting smarter about their investments, and betting on a fad is not smart investing. There is just too much competition from bigger players with deeper pockets that can offer a far superior product. Why do you think this POS hasn't been bought out yet? It's because those big players can build their own service for less than buying a failing company that has no earnings, a miniscule catalogue of music, exploding costs, and a staff of washed up musicians to pay to rate songs when a computer algorithm can do the same thing for no money and in much less time.
Just like you're still waiting for $40 and a gain on your investment. Imagine if all the money you put into this stock was invested in a stock that's not down more than 50% over the last year, or not down 22% over the last 2 years, or not down 13% since IPO. You've got dead money, and the opportunity cost is massive.
And I'll venture to guess we WON'T see you at the close on the 23rd, since you tend to disappear when things go bad with your beloved jukebox randomizer.
If that's the deal, then with all of those shares p_in_singapore is buying he'll at least be able to sew them all together to form a tent to live in under the overpass down by the river.