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Pandora Stock Not for Individual Investors

After the latest earnings report from Pandora, the Fast Money desk cautions individual investors to be wary not only of Pandora , but of all social media stocks.

Looking at the headline numbers, Pandora looks impressive – and that’s part of the problem.

The company grew its quarterly revenue 71 percent and its ‘listener hours’ 99 percent over the year-ago quarter. That's bullish right? Nope.

Dig down and you’ll find, “Content acquisition costs are rising – increase costs are a problem,” says Jon Najarian.

Also, the company’s quarterly revenue came in at $81.3 million, nearly two million short of expectations, and the company reported a three cent loss, a penny more than Wall Street projected.

As a result shares plunged 15 percent in the after hours.

And the Fast Money desk thinks those kinds of sudden moves will become the new norm as more social media stocks hit the market.

“I don’t think individual investors should go near the new social media stocks – they’re just too dangerous," says CNBC Contributor Ron Insana.

He says to play in this space you've got to be a pro who follows developments closely and can quickly move in and out of positions - because of developments just like this.

“If you’re looking at social media, hoping to make a quick buck because you think it’s 1996 – it will end badly. They’re probably going to be fad stocks,” Insana says.

- CNBC's Julia Boorstin contributed to this report

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Trader disclosure: On March 6, 2012, the following stocks and commodities mentioned or intended to be mentioned on CNBC’s "Fast Money" were owned by the "Fast Money" traders: J. Najarian is long IBM call spreads; J. Najarian is long QCOM call spreads; J. Najarian is long GDX call spreads; J. Najarian is long GDXJ call spreads; J. Najarian is long CRM call spreads; J. Najarian is long FIO call spreads; J. Najarian is long KERX call spreads; Finerman is long (AAPL); Finerman is long (BAC); Finerman is long (JPM); Finerman is long (HPQ); Finerman is short (SPY); Finerman is short (IWM); Finerman is short (MDY);

For Ron Insana
No Disclosures

For Abigal Doolittle
Doolittle is long (SDS)

For Mark Mahaney
Firm makes market in (AMZN)

For Geoffrey Scott
Firm owns foreclosed homes in Phoenix


CNBC.com with wires.