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) moved nicely higher this week, gaining 3.2% to hit $3.50. It was a positive week for the markets in general, but Sirius XM’s pop was double the Dow’s 1.6% climb.

There was more going on beyond the share-price gyrations, though, even as Sirius XM Radio Inc (NASDAQ:SIRI) hit another five-year high. Google Inc (NASDAQ:GOOG) introduced a new music streaming service, and an analyst downgraded Pandora Media Inc (NYSE:P) ahead of its upcoming quarterly report on Thursday.

Let’s take a closer look.

Higher ground
Sirius XM Radio Inc (NASDAQ:SIRI)It’s becoming old hat for Sirius XM Radio Inc (NASDAQ:SIRI) to nab fresh five-year highs. This is the third consecutive week the Wall Street darling has reached a new peak.

This week’s new pinnacle came on Wednesday, when Sirius XM hit $3.59 before investors took profits. It will be a challenge to stretch that streak to four weeks, since the shares would have to gain nearly 3% to get there.

A big factor will be how the market interprets the challenge behind Google All Access.

Big G brings the amps
It was just a matter of time before a tech titan made a play in rolling out a streaming music service. Google and Apple Inc. (NASDAQ:AAPL) have been rumored to be negotiating licensing deals with the major labels for several months.

The real surprise is that it was Google Inc (NASDAQ:GOOG), and not iTunes parent Apple, to make it official. After all, Apple Inc. (NASDAQ:AAPL) is the country’s largest seller of music. Why shouldn’t it be cashing in on the hot streaming trend?

With its handpicked playlists, Google All Access is a little bit Pandora Media Inc (NYSE:P) and a little bit Sirius XM Radio Inc (NASDAQ:SIRI)’s MySXM, but it’s mostly taking on Spotify. Even the $9.99 monthly price apes Spotify’s premium plan.

However, in a move to get early adopters on board quickly, Google is grandfathering in anyone who signs up before June 30 at a reduced $7.99-a-month rate.

Google hopes its market-dominant Android mobile operating system and its video-sharing site YouTube, where music videos go viral, will help give it advantages over the competition. This market is going to get crowded soon, but it’s too early to begin talking about the inevitable shakeout.

Sirius XM Radio Inc (NASDAQ:SIRI) is in a cozy place here, since its streaming service is mostly consumed as a $3.50-a-month add-on to existing receiver-based subscriptions.

Panned Pandora
Between new 52-week highs and Google’s All Access launch, there were probably plenty of reasons for analysts to get nervous when it comes to Pandora.

MKM Partners initiated coverage of Pandora with a bearish “sell” rating, and Maxim downgraded the shares from “buy” to “hold.” Both analysts have valuation concerns here, but maybe they wanted to steer clear of Pandora ahead of Thursday’s quarterly report.

Analysts see Pandora posting a loss — what may be its last quarterly deficit — on a healthy 53% surge in revenue. Naturally, the stock will move sharply one way or the other on Friday. It reports after the market close on Thursday.

A Sirius future
It was an interesting week for Sirius XM Radio Inc (NASDAQ:SIRI). 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 and owns shares of Apple and Google.

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

Dividend Stock Alert - Billionaire Robbins' Top Dividend Idea With 70% Upside Potential

Get Paid 3.5% Per Year While Waiting For The Stock Appreciate 70%

Larry Robbins' Glenview Capital Opportunity Fund returned 101.7% in 2013 and Robbins personally made $750 million. The same fund returned 25.3% in 2014. In this FREE REPORT we will share Robbins' top dividend idea that yields 3.5% and has been increasing its dividends for 39 consecutive years. Robbins thinks the stock has the potential to appreciate 70%.

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

Insider Monkey beat the market by 74 percentage points in 2.5 years. Our beta is only 1.2 (download a FREE newsletter and see the details inside)

Lists

Best Selling Magazines in the World

Shortest People in History

The Most Celebrated Holidays in the World

Most Expensive Handbag Brands in the World

Top Selling Comic Book Issues of this Century

The Most Powerful Women in Politics

Best Paid DJs

Most Rebellious Female Artists

Best Paid TV Actresses of 2014

Best Paid Actors of 2014

Most Expensive Horses in the World

Tallest People Ever

Most Encouraging Feminist Celebrities

Best Paid Supermodels of 2014

Top 10 Suburbs for Retirement in 2015

10 Wealthiest Cities in America

Top 10 TED Talks for Entrepreneurs

Best TED Talks on Education

25 Most Dangerous Places to Live in America

Top 10 Ski Resorts in the United States – 2014 List

Top 10 Most Remote Places in the World

Most Visited Museums in the United States

Wealthiest Photographers in the World

Most Famous Gay Athletes

The World’s Most Famous Circuses

Best Hair Stylists

Most Popular NASCAR Drivers

The Best Romance Movies of all Time

The Most Wanted Drug Lords

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

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!