The company has seen its fundamentals increase steadily over the last year, and the current valuation does not appear to beoutofline with historical multiples.
If Pandora ran several minutes of audio ads per hour (the way terrestrial radio does) vs. just a few 15 second spots, the percentage of revenues paid out as royalties would be dramatically lower and would be more in line with satellite radio or cable TV.
Obviously, a maker of passenger cars might be inclined to agree that growth is slowing in China, but that 7.6 percent GDP growth is not outofline with car sales.