Pandora's Beat Music To Shareholders Ears
Joel Elconin is the co-host of Benzinga's #PreMarket Prep, a daily trading idea radio show.
Pandora Media Inc (NYSE: P) shares are trading higher by $1.91 in Friday's session. The catalyst for the rally is a better-than-expected Q2 earning report. After Thursday's close, the company reported EPS ($0.05 vs. Est $0.02) and revenues of ($285.56M vs. Est. $283.13M).
The issue, which had trading at levels not seen April and March 2013, bottomed on Monday at $13.30. Over the three days it established a trio of lows between $13.77 and $13.79 that provided the foundation for the recent rally.
Investors reacted instantly to the positive report and shares ratcheted up from Thursday's close ($13.88) to over $15 in seconds.
The rally continued in the premarket and instigated a much higher opening at $15.49. That was followed by a brief retreat to $15.16 before rallying all the way to $16.47. The current high comes up a bit shy of the trio of highs from June 23 to June 25 ($16.65 to $16.85).
Today's rally is taking place on much higher than average volume. So far, 11.24 million shares have traded compared with Pandora's 20 day average of only 4.5 million shares.
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