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.

Biotech Insider Alert - $6 Stock To Hit $40

$200 Million Dollar Healthcare Hedge Fund's #1 Best Idea Right Now

The best healthcare hedge fund out there right now is one of the largest shareholders in this biotech stock. The fund returned more than 20% in each of the last 2 years with a virtually fully hedged portfolio, and it's sending out a BUY signal on this biotech stock. Get your FREE REPORT today (retail value of $300)

This is a FREE report from Insider Monkey. Credit Card is NOT required.
Comments
Insider Monkey Small Cap Strategy
Insider Monkey Small Cap Strategy

Insider Monkey beat the market by 52 percentage points in 24 months. Our beta is only 1.2 (don't click this link if beating the market isn't important to you).

Lists

The Oldest Money Managers

The Greatest Directors in the World

Largest Animals in the World

World’s Most Expensive Desserts

Best Selling Comic Books of All Time

A-list Actors who Sabotaged Their Career

Rappers With a College Degree

The Best Jazz Albums of all Time

The Most Influential Jazz Musicians

The World’s Most Famous Photographers

The Best Oscar-Winning Songs

Most Influential Choreographers Ever

Most Expensive Department Stores in the World

The Most Expensive Stolen Paintings in the World

The World’s Most Expensive Teas

Top Oscar Record Holders

The Most Expensive Flowers in the World

Countries With a Booming Film Industry

Most Expensive Cupcakes in the World

Uncommon European Escapes

The Most Stolen Artists in History

Best Travel Destinations in Australia

World’s Most Expensive Musical Instruments

World’s Most Famous Animals

Most Expensive Cakes in the World

Most Expensive Kosher Champagne in the World

Most Expensive Kosher Wine in the World

The Most Surprisingly Dark Fairy Tales

Most Popular Travel Destinations in Asia

The 10 Most Expensive Dresses Ever Worn to the Oscars

World’s Most Visited Art Museums

Best Countries for Photographers to Work in

Best Paid Jobs in the Film Industry

The Most Renowned Recovered Paintings Ever

Child Stars That Turned out Just Fine

Books That Were Banned in the Past Century

World’s Richest Dancers

Best Remedies against Bad Breath

Foods That Improve Your Skin Texture

Best-Selling Children’s Books of all Time

Foods That Boost Your Libido

Best-Selling Books of all Time

The Most Expensive Academy Awards Jewelry in History

Most Expensive Japanese Restaurant In New York City

The Best B-Boy Movies

Most Awesome Hip Hop Documentaries

Foods That Stain Your Teeth

Richest Doctors in the World

The Best Movie Sountracks Ever

The Highest Grossing Musicals on Broadway

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 129% in 2.5 years!! Wondering How?

Download a complete edition of our newsletter for free!