Pandora Media Inc (P) is Still a Good Short Opportunity: Apple Inc. (AAPL), Google Inc (GOOG)

Bottom line

Pandora has reported better than expected revenues and beaten the Street’s EPS estimates. In other news, the Chairman and CEO of Pandora has resigned after spending almost 9 years with the company. Mr. Joseph has been in charge of the Pandora since 2004, and will continue to do his duty until his successor takes charge.

Pandora Media Inc (NYSE:P) has just avoided a bullet with Apple halting its radio service for now. If the tech giant creates such a service in the future it could very well mean the end of Pandora. The company is already facing troubles from low margins and a competitive market. As a large portion of Pandora’s traffic comes from Apple devices, which makes it is highly likely that listeners will prefer to stay in the Apple ecosystem, if the tech giant starts a rival service. Google is another serious contender when it comes to branching a radio service, but there is still no official news on the matter. The company already has pretty solid internet advertisement machinery in place and can generate revenues from both display and audio commercials. I believe Pandora is still an attractive short target due to small margins and its inability to reduce its content acquisition costs.

The article This Company is Still a Good Short Opportunity originally appeared on Fool.com.

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