Trefis Morning Coffee – Pandora, Apple & Disney

by Trefis Team
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This morning we feature Pandora as our company of the day following its amended IPO filing yesterday. Pandora defines Internet radio and provides users up to 40 hours of music per month for free and relies of advertisements on both web and mobile apps for revenue. We have a preliminary analysis available on our site, which pegs the value of Pandora at around $984 million. We also highlight Apple‘s (NASDAQ:AAPL) iPad gross margin forecast as forecast of the day. Finally we test your knowledge on what channels contribute the most value to Disney’s (NYSE:DIS) stock value below. Take our quiz below.

Pandora Company of the Day

On Thursday, Pandora filed an amended IPO with a price range of $7-9, which implies close to a $1.2 billion valuation based on the current midpoint of the IPO range and using the new share count provided in the amended S-1. [1] We have a preliminary analysis available on our site, which pegs the value of Pandora at around $984 million.

Please note this analysis was done prior to the amended S-1 so we will update our share count and make some tweaks but the underlying fundamental drivers in our model should remain the same. In our analysis, we highlight mobile advertising as the largest value driver accounting for 60% of the stock value while Internet advertising chips in another 25%. Check it out and let us know what you think !

iPad Gross Profit Margin – Forecast of the Day

With staggering demand for the iPad, Apple (NASDAQ:AAPL) is leaving no stone unturned to ensure smooth functioning of its supply chain. It has also reduced the average iPad price to fend off competitors and is absorbing overhead costs caused by the Japan earthquake. These steps could impact iPad’s profit margin, but robust demand should comfortably compensate for the margin decline. Read more …

Which of these channels contributes the most to Disney’s (NYSE:DIS) stock value?

  1. ABC Family
  2. Lifetime
  3. A&E and History
  4. Disney Channel
Notes:
  1. This shares outstanding according to the amended S-1 is around 158.7 million – which could be 160.8 million if book runners decide to exercise the over-allotment option []
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