Pandora Media Inc (P): This Week in Sirius XM Radio Inc (SIRI)

Things never get dull for the country’s lone satellite-radio provider. Shares of Sirius XM Radio Inc (NASDAQ:SIRI) hit a multiyear high during the week before shedding 3.1% of their value to close out the week at $3.70. The media darling’s slide was worse than the Nasdaq’s 2.2% decline on the week.

Sirius XM Radio Inc (NASDAQ:SIRI)There was more going on beyond the share-price gyrations, though. Sirius XM Radio Inc (NASDAQ:SIRI) also announced an intriguing acquisition that makes it a bigger player in telematics, and a Goldman Sachs upgrade sent Pandora Media Inc (NYSE:P) to a new 52-week high, as the streaming music bellwether gears up to post its latest quarterly results.

Let’s take a closer look.

Sirius XM is a road hog

With improving cash flows and billions in net operating losses that it can use to offset future taxable profits, it was just a matter of time before Sirius XM Radio Inc (NASDAQ:SIRI) made a material acquisition. This week it announced that it will pay $530 million for Agero’s connected-vehicle-services business.

That’s a lot of money to pay, but the deal will make Sirius XM Radio Inc (NASDAQ:SIRI) a bigger player in telematics. The satellite-radio provider has decided that the best way to increase its revenue is to expand across the dashboard to other premium services. Te deal will find Sirius XM building on its relationships with many leading auto manufacturers, and ideally increasing the amount of revenue it can generate from each driver.

High times

Sirius XM Radio Inc (NASDAQ:SIRI) hit $3.85 on Monday, and again on Tuesday. You have to go all the way back to March 2008 to find the last time the stock traded this high.

The highs didn’t stick, though, as Sirius XM succumbed to the selling on the market. Falling all the way down to its $3.70 close will make it that much harder to revisit these five-year highs.

Cracking open Pandora’s box

Goldman Sachs analyst Heath Terry upgraded Pandora Media Inc (NYSE:P)’s stock rating from “neutral” to “buy” on Friday, slapping an ambitious $27 price target on the shares.

He now sees Pandora Media Inc (NYSE:P) earning $0.20 a share this year, well ahead of the $0.02 he was originally targeting and the $0.04 that currently stands as Wall Street’s consensus. Terry’s perspective has changed as Pandora Media Inc (NYSE:P)’s revenue has started to grow faster than its content costs.

Pandora Media Inc (NYSE:P) reports quarterly results on Thursday, so we’ll see whether Terry’s upgrade was either timely or unfortunate.

A Sirius future

It was an interesting week for Sirius XM. The new week isn’t likely to be dull.

The article This Week in Sirius XM Radio originally appeared on Fool.com and is written by Rick Munarriz.

Longtime Fool contributor Rick Munarriz has no position in any stocks mentioned. The Motley Fool recommends Pandora Media (NYSE:P).

Copyright © 1995 – 2013 The Motley Fool, LLC. All rights reserved. The Motley Fool has a disclosure policy.

blog comments powered by Disqus
Insider Monkey Headlines
Insider Monkey Small Cap Strategy
Insider Monkey Small Cap Strategy

Insider Monkey beat the market by 52 percentage points in 24 months Click to see monthly returns in table format!

Lists

5 Retirement Mistakes To Avoid (and Einstein’s Famous Quote)

11 Smartest People in the World

6 Films About the Financial World You Need To Watch (While “The Wolf” is Not Around)

Warren Buffett and Billionaires Are Crazy About These 7 Stocks

The Top 10 States With Fastest Internet Speeds

10 Best Places to Visit in USA in August

Top 10 Cities to Visit Before You Die

Top 10 Genetically Modified Food In the US

15 Highest Grossing Movies Opening Weekend

5 Best Poker Books For Beginners

10 Strategies Hedge Funds Use to Make Huge Returns

Top 10 Fast Food Franchises to Buy

10 Best Places to Visit in Canada

Best Summer Jobs for Teachers

10 Youngest Hedge Fund Billionaires

Top 10 One Hit Wonders of the 90s

Fastest Growing Cities In America

Top 10 U.S. Cities for Freelancers

Top 9 Most Popular Free iPhone Apps

Top 10 Least Expensive Private Business Schools in the US

Top 15 Most Expensive Countries in the World – 2014

Top Businesses to Invest In

Top 5 Things You Might Be Doing Wrong With Your Business

Top 5 Strategic Technology Trends in 2014

Top Rags to Riches Stories

Parenting Behavior That Promotes Future Leaders

Top 5 Mistakes Made by Small Businesses

Top 5 Most Common and Potentially Devastating Financial Blunders

Top 5 Highest Paying Jobs for Web Designers

Top 6 Most Respected Professions that Also Pay Well

Top 5 Pitfalls Investors Should Avoid

Top 6 Lawyers and Policy Makers Under 30

Top 6 New Year’s Resolutions for Entrepreneurs

Top 7 Locations to Check in on Facebook

Top 5 Mistakes made by Rookie eBay Sellers

Top 7 eBook Publishers in 2013

Top 6 Health Industry Trends in 2014

5 Lessons for Entrepreneurs from Seth Godin

Top 5 Success Tips from Jordan Belfort – the Wolf of Wall Street

Best Master’s in Finance Degree Programs

Top 6 Earning Celebrities Over 50

The most expensive sports to play

Top 7 Earning Celebrities Under 25

Best 7 Online Courses to Take: Free Finance MOOCs

Top 6 Bad Habits that Promote Failure

20 Most Valuable Soccer Teams in the World in 2013

12 Most Expensive Countries for Foreign Students

Top 30 Most Influential Women in the World

Top 20 Most Expensive New Year Eve Shows

Top 5 Best Vocational Careers

Subscribe

Enter your email:

Delivered by FeedBurner

X

Thanks! An email with instructions is sent to !

Your email already exists in our database. Click here to go to your subscriptions

Insider Monkey returned 47.6% in its first year! Wondering How?

Download a complete edition of our newsletter for free!