Sirius XM Stock Down 59% Over Five Years Amidst Tech Competition
Written by Emily J. Thompson, Senior Investment Analyst
Updated: 1h ago
0mins
Source: Fool
- Disappointing Returns: Sirius XM has generated a total return of negative 59% over the past five years, indicating significant challenges in maintaining growth amidst a competitive landscape, severely impacting investor confidence.
- Intensifying Competition: The rise of tech companies like Spotify, Apple, and Alphabet poses a serious threat to Sirius XM's market dominance, particularly among younger audiences who prefer mobile-first audio services.
- Subscriber Loss Risk: The company has reported losing self-pay subscribers in eight of the last 11 quarters, leading to a less than 1% year-over-year revenue decline in Q3, indicating a gradual shrinkage of its customer base with flat revenue projections from 2025 to 2027.
- High Debt Pressure: As of September 30, Sirius XM carries a debt load of $10.1 billion, approximately 48% more than its market cap, amplifying investment risks despite a low forward P/E ratio of 6.9 and a dividend yield of 5.3%.
Analyst Views on SIRI
Wall Street analysts forecast SIRI stock price to rise over the next 12 months. According to Wall Street analysts, the average 1-year price target for SIRI is 23.13 USD with a low forecast of 18.00 USD and a high forecast of 30.00 USD. However, analyst price targets are subjective and often lag stock prices, so investors should focus on the objective reasons behind analyst rating changes, which better reflect the company's fundamentals.
8 Analyst Rating
2 Buy
2 Hold
4 Sell
Hold
Current: 20.450
Low
18.00
Averages
23.13
High
30.00
Current: 20.450
Low
18.00
Averages
23.13
High
30.00
About SIRI
Sirius XM Holdings Inc. is an audio entertainment company in North America. The Company has a portfolio of audio businesses, including its flagship subscription entertainment service SiriusXM; the ad-supported and premium music streaming services of Pandora; an expansive podcast network, and a suite of business and advertising solutions. Its segments include Sirius XM and Pandora and Off-platform. The Sirius XM segment features music, sports, entertainment, comedy, talk, news, traffic and news channels and other content, as well as podcasts and infotainment services, in the United States on a subscription fee basis. Sirius XM's packages include live, curated, and certain exclusive and on-demand programming. The Pandora and Off-platform segment operates a music, comedy, and podcast streaming discovery platform, offering a personalized experience for each listener wherever and whenever they want to listen, whether through mobile devices, vehicle speakers or connected devices.
About the author
Emily J. Thompson
Emily J. Thompson, a Chartered Financial Analyst (CFA) with 12 years in investment research, graduated with honors from the Wharton School. Specializing in industrial and technology stocks, she provides in-depth analysis for Intellectia’s earnings and market brief reports.
