Wednesday, November 6, 2013

Pandora Stock Jumps On Latest Listener Data

Pandora Media Inc. shares jumped Tuesday after the company released figures showing gains in active listeners in the U.S. radio market, which suggested the Internet radio leader is withstanding the challenge from Apple Inc.’s new iTunes Radio service.

According to Marketwatch, Pandora shares ended the day up by almost 9%, at $27.88, after the company said that users listened to 1.47 billion hours of music and programming on the service during October, an 18% increase from a year ago.

The company nearly matched the 1.49 billion listener hours it reported in March, which was one month prior to Pandora implementing a cap on free-listening on mobile devices to 40 hours a month. Pandora lifted that cap on September 1, not long before Apple launched iTunes Radio.

Apple Chief Executive Tim Cook said in October that 20 million people had used iTunes radio in the first month it was available. Pandora said Tuesday that it ended the month with almost 71 million active listeners, compared with 59.2 million listeners a year ago.

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