Sirius XM Radio Inc (SIRI): This Week in The Company

Things never get dull for the country’s lone satellite-radio provider. Shares of Sirius XM Radio Inc (NASDAQ:SIRI) moved lower this week, closing 2.3% lower to hit $3.01. The general market moved lower, but it didn’t take as big a hit.

Sirius XM Radio Inc (SIRI)The stock dipped below $3 on an intraday basis for the first time since late February, but there was more going on beyond share-price gyrations. The media giant also announced a couple of special concerts for Sirius XM Radio Inc (NASDAQ:SIRI) subscribers. Auto sales were strong in March, leading a major tracker to boost its outlook for 2013. A study also shows that Pandora Media Inc (NYSE:P) and streaming music may be more popular than we think.

Let’s take a closer look.

Crossing the line
Sirius XM Radio Inc (NASDAQ:SIRI) found itself in recently unfamiliar territory when its shares dipped below $3 on Thursday. You have to go back o late February to find the last time shares traded below $3. When the stock hit $2.95 on Friday, it matched the lowest point of trading so far in 2013.

If Sirius XM Radio Inc (NASDAQ:SIRI) had a strong first quarter in terms of subscriber adds, it may want to speak up in the days ahead. The stock could use a positive catalyst.

Membership has its benefits
Sirius XM Radio Inc (NASDAQ:SIRI) had several member events to announce this week. It will host private concerts by country-music icon Kenny Chesney and alternative rockers Phoenix for its subscribers. There will also be a town-hall chat with Latin music legend Juanes, hosted by Ruben Blades.

All three events will take place around New York City. Sirius XM Radio Inc (NASDAQ:SIRI) does occasionally host special events to which only Sirius XM subscribers are invited, but they’re mostly centered on the company’s home city.

C’mon, Sirius XM. The vast majority of your subscribers are not in New York. Take these shows on the road!

Driven to win
Auto tracker Edmunds liked what it saw with the auto industry’s new-car sales metrics for March, which were released earlier this week. Edmunds now sees U.S. car sales coming in at 15.5 million this year, up from its earlier forecast of 15 million light vehicles being sold. That would be the industry’s best year since 2007.

Ford Motor Company (NYSE:F) and Fiat‘s Chrysler were the biggest winners among automakers, with March sales up 5.7% and 5%, respectively. You have to go all the way back to 2007 here as well to find the last time either company fared this well.

This is all great news for Sirius XM, which relies on new cars with factory-installed satellite receivers. Since 44% of the buyers of cars with receivers wind up sticking around as self-paying customers, there’s nothing as encouraging for Sirius XM’s long-term success than healthy auto sales.

Unboxing Pandora Media Inc (NYSE:P)
How is Pandora Media Inc (NYSE:P) not like a pterodactyl? The “P” is no longer silent.

Get it? P is Pandora’s ticker symbol? The company’s making a lot of noise as it moves higher these days?

Oh, well. You’re a tough crowd. Let’s move on.

The popular music-discovery service with nearly 68 million unique monthly users is getting even stickier. The service came up on a graph during Facebook Inc (NASDAQ:FB)‘s media event on Thursday to roll out its new Android-based Facebook Inc (NASDAQ:FB) Home platform.

Facebook was pointing out how social has become a major part of the smartphone experience, and it proved the point by showing that Facebook and its own photo-sharing platform, Instagram, are the first and third most used mobile apps. Who was wedged in the middle? Yes, that’s right — Pandora.

Music streaming is huge, making this an ideal time for Sirius XM to make a bigger play the way it did earlier this year, with the rollout of personalized radio.

An NPD Group Music Acquisition Monitor study that surveyed thousands of consumers reveals that Pandora and smaller rivals accounted for 23% of the time that folks between 13 to 35 spent listening to music during last year’s fourth quarter. Music-streaming sites ate up just 17% of the music listening a year earlier.

And the beat goes on.

The article This Week in Sirius XM Radio originally appeared on Fool.com.

Longtime Fool contributor Rick Munarriz owns shares of Ford. The Motley Fool recommends and owns shares of Facebook and Ford.

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 44 percentage points in 21 months Learn how!

Lists

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

Top 10 Jobs for 2014 by Salary Gain (Predictions)

Top 5 Digital Trends for 2014

Top 6 Things You Can Do To Increase Your Productivity

Top 9 Trending Smartphones in 2013

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!