Pandora Reaches Highest Level Since Q4 Earnings Release

Joel Elconin is the co-host of Benzinga's #PreMarket Prep, a daily trading idea radio show.

Pandora Media Inc P shares were trading higher by $0.54 (3.6 percent) at $15.44 in Tuesday's session. It may be rallying off comments made by Spotify VP Brian Benedik who alluded to the fact that radio pays nothing to record companies, while Pandora is required to half its revenue in royalties.

Pandora has been out of favor with Wall Street since announcing Q4 earnings on February 5. Despite matching EPS estimates of $0.18, its revenue miss ($268 million vs. $276.28 million) did not set well with investors.

The poor report induced over a $3.00 decline ($18.41 to $15.24) the following day. Two days later, it put in the low for the recent down move at $14.56 and rebounded to $15.48 before heading back under $15.00.

Over the last six trading sessions (including today), it put in place in a series of lows in a narrow range ($14.70 to $14.98). Earlier in Tuesday's session, it bottomed at $14.86 and spiked to $15.79 off the comments from the Spotify VP.

Since making that high, it retreated to $15.31 before resuming its move higher. If the issue can surpass its intraday high, it will enter an area of little resistance created by the vacuum down day following Q4 earnings release.