Pandora Media stock plunged 26 percent on Friday as things went via bad to worse after its third-quarter earnings report.
The company revised its fourth-quarter revenue forecast downward, to a range of $365 million to $380 million, Pandora CFO Naveen Chopra revealed on a conference call with investors Thursday evening. in which can be well below the consensus estimate of $413 million before the report, according to FactSet.
Pandora also reported weak revenue for the third quarter. Four firms downgraded the company’s stock in response, lowering expectations for the company via buy to hold.
The shares were down 26 percent to $5.44 Friday afternoon.
“We have been trying to stick with Pandora through its multiple management modifications along with multi-year turnaround process,” JPMorgan analyst Doug Anmuth wrote in a note. “However, near-term advertising trends are deteriorating along with we believe in which will take time for the company to realize the benefits of its ad tech investments.”
SunTrust Robinson Humphrey, Stifel Nicolaus along with FBR joined JPMorgan in revising ratings of Pandora’s stock lower.
“We are a bit taken back as the company appears much further behind in its ad tech product map than we have appreciated along with the company’s deficiencies appear more severe,” SunTrust analyst Matthew Thornton wrote in a note.
Pandora’s revenue from the last quarter was $379 million, below expectations of $380.6 million in a Thomson Reuters survey of analysts. Advertising revenue, which accounts for the bulk of Pandora’s overall revenue, grew 1 percent year over year yet missed analyst expectations. Pandora reported $275.7 million in advertising revenue, which also came in below the $289.3 million projected by StreetAccount.
“There’s no silver bullet in which’s going to come in along with solve these problems,” CEO Roger Lynch said in a conference call with investors. He said investments in ad targeting along with reporting technology could start to have an effect throughout 2018.
The stock was already struggling This particular year, falling 43 percent for 2017 through Thursday’s close, according to FactSet.