Start the conversation
Pandora Media (NYSE: P) stock climbed as much as 15% today to a high of $37.95, after analysts at Goldman Sachs Group Inc. (NYSE: GS) estimated that the stock could nearly double in the next year.
Goldman Sachs analyst Heath Terry told investors that "if Pandora doubles advertising, increases its mix of local commercials to half of all ads and leverages fixed-content costs," the stock could go as high as $60.
"The next two years are critical for the development of Pandora's long-term revenue trajectory and royalty rates," Terry said.
The stock pared some of its gains after hitting the all-time high and was trading just below $37 at 1:30 p.m. EST.
While the Goldman rating explains today's boost, there are other bullish signs for Pandora stock in 2014…
Pandora Stock: Behind Today's Meteoric Rise
Currently, Pandora accounts for approximately 8% of all radio hours in the United States. The radio company boasts more than 76 million active monthly users who listened to 1.58 million hours of radio in December.
Approximately $15 billion is spent each year in the United States on radio advertising, but Pandora draws in less than 1% of U.S. radio ads. Company officials are hoping to up that percentage by reportedly opening sales offices across the country.
Another positive sign for Pandora is its continued integration into today's "smart automobile."
According to the company, more than 4 million people had used Pandora's native integration system to access Pandora in their vehicles as of Jan. 6, 2014. The same statement mentions that 23 major auto brands incorporate the Pandora technology currently.
"Nearly half of all radio listening takes place in the car. We knew early on that to redefine radio, we would need to seamlessly deliver Pandora through in-dash entertainment systems," Pandora's Chief Marketing Officer Simon Fleming-Wood said. "With an 8.60% share of total U.S. radio listening and unmatched growth and adoption of Pandora in the car, we are now seizing the opportunity to connect advertisers with a more targeted audience than traditional radio can provide."
Then there was this development from Consumer Electronics Show 2014 (CES 2014):
Tags: (NYSE: GS), Best Investments, best investments today, best stocks 2014, best stocks to buy, best stocks to buy 2014, best stocks to buy now, best stocks to buy right now, best stocks to buy today, best stocks to invest in, best stocks today, best tech investments, Best Tech Investments 2014, best tech investments today, best tech stocks, best tech stocks 2014, best tech stocks to buy, best tech stocks to buy now, Best Tech Stocks to buy Today, best tech stocks today, Hot Stocks, how to invest 2014, Investing 2014, Investing in Tech Stocks, NYSE: BP, NYSE: F, NYSE: P, P stock, Pandora advertising, Pandora stock, stock to buy, Stocks to Buy, stocks to buy 2014, Stocks to Buy Now, stocks to buy today, stocks to invest in, tech investments, tech ipos, tech penny stocks, tech stocks, tech stocks 2014, tech stocks to buy, tech stocks to buy today, tech stocks today, top stocks, top tech stocks, where to invest 2014