Shares of music streaming leader Pandora Media soared 12% on Thursday after it released its quarterly results. Yes, it posted a loss. And, yes it also posted a slight dip from last quarter. However, it's all about expectations, and Pandora beat those handily.
Internet radio has never been as popular as it is right now, and market leader Pandora continues to grow at a heady pace. It has seen its shares of the total U.S. radio-listening market nearly double to 5.55%. That's the upbeat song. But here come the blues.
There's a new threat on the horizon for Internet radio leader Pandora: Facebook has plans to partner with music streaming service Spotify. The good news for Pandora is that Spotify isn't online in the U.S. yet. They won't compete head to head for years. But when they do, what might it do to Pandora's stock value?