Pandora Stumbles On Weaker-Than-Expected Topline Growth; Bottomline Worries Remain

For the full year 2015, Pandora has guided revenues between $1.15-$1.17 billion, some way below the consensus estimate of $1.21 billion. Although the company's results and guidance missed estimates by a fair margin, 20% fall in share price seems like an overreaction in the market. However, it must be noted that investors are already skeptical about the company's business model due to its volatile profitability, and weaker-than-expected topline growth has just increased their worries.