What the Crystal Ball is Saying About P


I am short P, and today it got pile-driven, to the tune of -7.6%. They have a good balance sheet, but that’s about it. Spotify has made them almost irrelevant, and with iRadio coming from AAPL, well, goodnight.

is like the whiny little rich kid that thinks because they have come up with one decent idea, that they should be given the keys to their dad’s company. They have said multiple times that they cannot make money by streaming music, because of the royalties to be paid to the music industry.

Why would anyone want to invest in a company that says it can’t be profitable, unless the rules are changed? They do not have the clout to change the royalty rates, but I believe AAPL does, and they also have the ability to drop P’s app from the App Store. Remember Google Maps? iRadio is far easier to implement, then map software, no one is going to get hurt if their radio station takes them to “Heavy Metal,” instead of “Metal Drums.”

is going to take a monster hit, and continue down. Then I think YHOO will buy them, but it will be too late. At the same time, Spotify, having real connections with the music industry and Silicon Valley, will “partner” with GOOG. P will be left sucking its thumb, saying “but guys, remember me?”

3 Responses to “What the Crystal Ball is Saying About P”

  1. Completely agree.

  2. …and Microsoft will buy Rdio for Xbox…and continue to be the kid everyone forgot about in consumer electronics

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