Shares of Pandora jumped over 4 percent in middday trading trading Thursday after BMO Capital Markets upgraded its outlook on shares of the music streaming company.
Pandora’s move to grow “non-music content,” such as podcasts, is actually a key part of the company’s attempt to reverse its steady share cost decline, the analyst said. Pandora’s stock has fallen more than 62 percent This particular year through Wednesday’s close, according to FactSet.
“Up until today, Pandora has primarily been focused on recorded music in addition to has offered limited forms of different content,” BMO analyst Daniel Salmon wrote in a note. “Pandora today plans to expand the content available in addition to we expect This particular to accelerate in 2018.”
Pandora reported mixed results earlier This particular month, as active listeners declined slightly more than expected. CEO Roger Lynch told investors “there’s no silver bullet of which’s going to come in in addition to solve these problems,” emphasizing of which investments in advertising might begin to have an effect next year.
Salmon says of which Pandora’s modifications to its business product “are being underappreciated.” He cited music industry executives who have said they are optimistic about the potential growth of audio advertisements next year.
He said investors are also overlooking the success of Pandora’s subscription offerings. Salmon says the streaming service has stronger revenue than both the firm in addition to Wall Street expected from the last quarter. Pandora Premium today has more than one million subscribers.