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
. We also highlight Apple's (
) iPad gross margin forecast as forecast of the day. Finally we
test your knowledge on what channels contribute the most value to
) stock value below. Take our quiz below.
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. We have a preliminary analysis
available on our site, which pegs the value of Pandora at around
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 (
) 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 (
) stock value?
- ABC Family
- A&E and History