Pandora Media Inc (P) Trending Due to Premium Product

Pandora Media Inc (NYSE:P) is trending after the company’s on-demand paid service, Pandora Premium, opened to the broader public after being invite-only for months. The service, which costs $9.99 per month, is aimed to blunt competitor Spotify’s growth and offers subscribers the ability to listen to any track in Pandora’s collection, along with the traditional Pandora radio channels. Needless to say, Pandora Media Inc (NYSE:P) management hopes that the broader offering will ramp up growth and increase overall demand. Many holders of Pandora have been frustrated at the stock’s recent slide and some activists would like the company to sell itself. Having a successful premium product would go a long way to quell those equity holder concerns.

What Does The Smart Money Sentiment Say?

At Insider Monkey, we’ve developed an investment strategy that has delivered market-beating returns over the past 12 months. Our strategy identifies the 100 best-performing funds of the previous quarter from among the collection of 700+ successful funds that we track in our database, which we accomplish using our returns methodology. We then study the portfolios of those 100 funds using the latest 13F data to uncover the 30 most popular mid-cap stocks (market caps of between $1 billion and $10 billion) among them to hold until the next filing period. This strategy delivered 39.7% gains over the past 12 months and outperformed the 24.1% gain enjoyed by the S&P 500 ETFs. Our enhanced small-cap hedge fund strategy returned more than 45% over the last 12 months and outperformed SPY by more than 30 percentage points over the last 4.5 years (see details here).

The smart money was bullish on Pandora in the fourth quarter. Of the 742 elite funds we track, 58 funds owned $1.47 billion of Pandora Media Inc (NYSE:P) and accounted for 48.40% of the float on December 31, up from 50 and $1.54 billion on September 30.

The Bottom Line

Pandora Media Inc (NYSE:P) shares are in the spotlight due to the company making a premium product available to the broader public. For more reading, check out ‘11 Best Music Documentaries on Yotube‘.

Disclosure:None