Tiger Management Welcomes Microsoft, Pandora to Portfolio, Chases Off Netflix, Teva

Pandora Media Inc (NYSE:P)

– Shares Owned by Tiger Management (as of June 30): 1.46 million

– Value of Tiger Management’s Holding (as of June 30): $18.19 million

California-based music streaming service Pandora Media Inc (NYSE:P) caught the attention of Tiger Management in the second quarter, as the fund amassed 1.46 million new shares of the company. Last week, the Wall Street Journal reported that Pandora was close to reaching deals with major record companies after which it would launch an on-demand music service, a departure from its current radio model. The alleged move comes as the company faces intense pressure due to competitors like Apple Music, Spotify, and now a rumored upcoming entrant from Amazon.com, Inc. (NASDAQ:AMZN), and suffers slowing user growth and revenue, which mostly come from ads rather than subscriptions. Pandora Media Inc (NYSE:P) recently squashed an acquisition offer worth $3.40 billion from Liberty Media Corp (NASDAQ:LMCA). Pandora’s stock is up by 2% year-to-date. At the end of the second quarter, Gilchrist Berg’s Water Street Capital owned 8.04 million shares of Pandora.

Netflix, Inc. (NASDAQ:NFLX)

During the second quarter, Tiger Management sold all 240,800 Netflix, Inc. (NASDAQ:NFLX)’s shares that it had owned on March 31. Last month, Netflix Inc (NASDAQ:NFLX) said that it added 1.7 million new streaming customers in the three months ended June 30, significantly lower than the estimates of 2.5 million. For the third quarter, Netflix expects to add another 2 million new subscribers, also well below analysts’ expectations of 2.54 million. The disappointing growth stats led investors to widely cut their price targets and ratings for Netflix. Despite that, the stock has rebounded from a big post-earnings dip to trade up by over 5% in the third quarter. At the end of the second quarter, 54 hedge funds tracked by Insider Monkey were bullish on Netflix Inc (NASDAQ:NFLX), down from 64 funds a quarter earlier.

Teva Pharmaceutical Industries Ltd (ADR) (NYSE:TEVA)

Tiger also bid farewell to Teva Pharmaceutical Industries Ltd (ADR) (NYSE:TEVA) during the second quarter, selling the 356,200 shares of the Israeli drugmaker that it held on March 31. Teva’s shares have lost over 18% so far in 2016. Last week, Teva said that the European Commission had granted marketing authorization for CINQAERO, its antibody for adult patients with severe eosinophilic asthma. Teva Pharmaceutical Industries Ltd (ADR) (NYSE:TEVA) earned $1.25 per share on $5 billion in revenue for the second quarter, coming in ahead of the Street’s forecasts of $1.20 in EPS on $4.87 billion in revenue. The company expects to earn between $5.20 and $5.40 per share for the full year.

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