Sirius XM Radio Inc (SIRI) Is Alright — For Now

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Shows like House of Cards and the fourth season of Arrested Development are exclusive to Netflix subscribers, and so a service like Amazon.com, Inc. (NASDAQ:AMZN) Prime cannot so easily steal Netflix’s customers.

An analyst at Lazard Capital upgraded Netflix stock a Buy in April with a $325 price target. Lazard believes that, in light of its expanded exclusive offerings, Netflix, Inc. (NASDAQ:NFLX) ought to be viewed more like a TV network.

Too early to doubt Sirius XM

Right now, it’s still too early to call for the death of Sirius XM Radio Inc (NASDAQ:SIRI)’s business model. Although online competitors should pressure the company, exclusive content gives Sirius a moat that can’t be so easily bridged.

In the long-run, Sirius XM could face immense challenges, but while the company continues to add subscribers and generate significant free cash flow, it doesn’t seem wise to bet against it.

Joe Kurtz has no position in any stocks mentioned. The Motley Fool recommends Apple and Netflix. The Motley Fool owns shares of Apple and Netflix. Salvatore “Sam” is a member of The Motley Fool Blog Network — entries represent the personal opinion of the blogger and are not formally edited.

The article Sirius XM Is Alright — For Now originally appeared on Fool.com and is written by Salvatore “Sam” Mattera.

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