Facebook Inc (FB), Google Inc (GOOG), And Will This Overtake TV?

A Company to Avoid

The previously cited projections paint Pandora Media Inc (NYSE:P) as the third-largest player in the U.S. mobile market based on expected net mobile internet display ad revenue share in 2015. Pandora provides a combination of free and paid internet radio services. The U.S. government has set royalty payments so high that Pandora has had negative operating income before depreciation and amortization for two of the last four quarters.

The company is expected to post a negative EPS of $-0.15 in 2014 and $-0.02 in 2015. Even with a three-year revenue growth rate of 97.9%, profits are very unstable. The company is stuck fighting against the entrenched record industry, a dangerous proposition.

Conclusion

The mobile space is growing, but television is growing as well. Google Inc (NASDAQ:GOOG) is an attractive investment because its video assets let it provide television-quality ads, but in the mobile medium. Facebook Inc (NASDAQ:FB) isn’t as attractive with its higher valuations and less persuasive display ads. The internet radio company Pandora Media Inc (NYSE:P) will benefit from a growing mobile ecosystem, but it is not an attractive investment. Its profits are unsteady and dependent upon it being able to play the political game better than experienced record companies.

The article Will Mobile Overtake Television? originally appeared on Fool.com and is written by Joshua Bondy.

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