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