Internet radio company Pandora is stealing share from the $15 billion terrestrial radio market, and that should open up an opportunity to sell more audio ads, according to one analyst.
Upgrading the Internet radio company to outperform, John Blackledge of Cowen told CNBC that while the stock has run up sharply already this year, rising audio ad revenue should be "a bigger impact sooner than we expected."
"They have been investing the last two years in building the infrastructure to take share from terrestrial radio," the analyst said. "It's here now, and it drove our numbers. We're expecting audio ad revenue of $293 million in fiscal 2014, going to $1.8 billion by fiscal 2019."