What Can Produce 20% Downside For Pandora’s Stock In The Next 1-2 Years?
The stock of Pandora (NYSE:P) can fall ~20% next year, if its content acquisition costs increase at a faster than expected pace due to its inability to strike direct licensing deals with music publishers and rights agencies. A faster rise in content costs could lead to an expansion of 3% in EV/EBITDA multiple, but 24% decline in 2016 EBITDA. For increased expenses will likely compress valuation metrics. We present this scenario in the following tabular fashion. See the links below for additional information.
- Can Pandora End The Year On A Strong Note After Solid Q3?
- Is SiriusXM Paying The Right Price For Pandora?
- How Will Subscriber Growth Drive Pandora In The Second Half Of 2018?
- Can Subscriber Growth Drive Pandora’s Q2?
- Spotify Has Seen A Big Rally, But Still Faces Some Challenges
- How Much Can Pandora Benefit From Snapchat Partnership?
Have more questions about Pandora? See the links below:
- What’s Pandora’s Revenue & Earnings Breakdown In Terms of Different Revenue Sources?
- By How Much Have Pandora’s Revenue & EBITDA Increased In The Last Five Years?
- How Has Pandora’s Revenue Composition Changed In The Last Five Years?
Notes:
Global Large Cap | U.S. Mid & Small Cap | European Large & Mid Cap |More Trefis Research