Pandora Media’s Profit Margin To Remain Under Pressure

According to an analyst from Seeking Alpha, Pandora Media’s (NYSE: P) margins would remain under pressure due to competition. Although, the company reported an increase of 55% in its second-quarter revenues, it showcased a net loss of $28MM.

Adding to the woes, Pandora’s increasing spend in Selling, General and Administration expenses (SG&A) is almost on proportion with its increase in revenues. Even as we Bulls at Amigos had pointed out earlier, this stock is not something we would buy in the near future. In the below table, you would observe (in highlighted area) that Revenue Y/Y Gr % and SG&A Gr % is almost proportional.

Pandora Media

 Source: AmigoBulls Analysis

To see Pandora Media’s latest stock price movement, click here (NASDAQ: P)

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Neither Amigobulls, nor any members of its staff hold positions in any of the stocks discussed in this post. The author may not be a certified/registered investment advisor, and the opinions expressed should not be treated as investment advice. Buying and selling of securities carries the risk of monetary losses. Readers/Viewers are advised to carry out their own due diligence and consult their investment advisors before making any investment decisions. Neither Amigobulls, nor the author have any business relationship with any of the companies covered in this post.

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