This Week in Sirius XM Radio

Satellite radio is never boring.

Feb 1, 2014 at 9:30AM

Things never get dull for the country's lone satellite-radio provider. Shares of Sirius XM Radio (NASDAQ:SIRI) moved lower on the week, sliding 1.6% to close at $3.58. The media darling's dip was worse than the Nasdaq's 0.6% drop on the week.

There was more going on beyond the share-price gyrations, though. Sirius XM saw short interest hit a new low. It expanded its deal with Nissan (NASDAQOTH:NSANY). Howard Stern celebrated his birthday with a celebrity-studded celebration that streamed worldwide. And on the streaming front, Pandora (NYSE:P) got an upgrade from Goldman Sachs.

Let's take a closer look.

She wears short shorts
One thing the Liberty Media (NASDAQ:LMCA) proposed buyout has done is clear out the folks betting against Sirius XM. There were 221.6 million shares of the media darling sold short as of mid-January. That may seem like a big number, but it's by the far the stock's lowest short interest over the past year. At the end of February last year, naysayer activity peaked, with more than 414 million shares held short. 

It does make sense that the bears have moved on. Liberty Media's buyout proposal is at an unfortunate pittance of a premium, but it does at least set a bottom for the stock as long as John Malone's media empire doesn't back away. 

I'm turning Japanese -- I really think so
Nissan and Sirius XM have extended their deal, expanding the factory installation in Nissan vehicles as well as pushing the expiration out to 2018.  

It's a smart move for both parties, and it once again speaks to Sirius XM's leverage, since the Sirius merger with XM was finalized nearly six years ago. Auto companies love the incremental revenue that they get from Sirius XM for active subscribers, but they can no longer play Sirius off XM to try to get a better deal. 

Blowing out all 60 candles
The Howard Stern Birthday Bash took place last night, with a star-studded collection of guests. The celebration was made available as a free stream for non-subscribers everywhere around the world, and while it got off to a slow start, things picked up by the end of the more than six-hour broadcast.

Sirius XM CEO Jim Meyer was there, and Stern offered up some kind words by calling him a friend and playing up the collective effort of the satellite-radio company. He certainly didn't sound like someone who will be leaving when his contract is up at the end of next year, but that tone will probably change as we get closer to 2016.

It was still a great opportunity for Sirius XM to shine to its non-subscribers and to set itself up as a global brand if it should ever expand its streaming platform overseas. 

Panning for Pandora
Goldman Sachs upgraded shares of the leading music streaming website on Thursday, sending the stock to a new 52-week high. Analyst Heath Terry writes that that the stock could hit as high as $60 if Pandora is able to double its advertising, make higher-paying local spots a bigger part of the mix, and improve the leverage of its content costs. 

It's a welcome move for a stock that was already one of the market's big winners last year. Pandora should tell us in a few days how its key metrics held up for January.

Here in my car
You don't know it yet, but you probably spent thousands more than you should have on your vehicle. In fact, the auto industry can be such a dangerous place for consumers that our top auto experts are determined to even the playing field. That's why they created a a brand new free report on The Car Buying Secrets You Must Know. The advice inside could save you thousands of dollars on your next car, so be sure to read this report while it lasts. Your conscience, and your wallet, will thank you. Click here now for instant access.

Rick Munarriz has no position in any stocks mentioned. The Motley Fool recommends Goldman Sachs and Pandora Media and owns shares of Liberty Media and Sirius XM Radio. Try any of our Foolish newsletter services free for 30 days. We Fools don't all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. The Motley Fool has a disclosure policy.

4 in 5 Americans Are Ignoring Buffett's Warning

Don't be one of them.

Jun 12, 2015 at 5:01PM

Admitting fear is difficult.

So you can imagine how shocked I was to find out Warren Buffett recently told a select number of investors about the cutting-edge technology that's keeping him awake at night.

This past May, The Motley Fool sent 8 of its best stock analysts to Omaha, Nebraska to attend the Berkshire Hathaway annual shareholder meeting. CEO Warren Buffett and Vice Chairman Charlie Munger fielded questions for nearly 6 hours.
The catch was: Attendees weren't allowed to record any of it. No audio. No video. 

Our team of analysts wrote down every single word Buffett and Munger uttered. Over 16,000 words. But only two words stood out to me as I read the detailed transcript of the event: "Real threat."

That's how Buffett responded when asked about this emerging market that is already expected to be worth more than $2 trillion in the U.S. alone. Google has already put some of its best engineers behind the technology powering this trend. 

The amazing thing is, while Buffett may be nervous, the rest of us can invest in this new industry BEFORE the old money realizes what hit them.

KPMG advises we're "on the cusp of revolutionary change" coming much "sooner than you think."

Even one legendary MIT professor had to recant his position that the technology was "beyond the capability of computer science." (He recently confessed to The Wall Street Journal that he's now a believer and amazed "how quickly this technology caught on.")

Yet according to one J.D. Power and Associates survey, only 1 in 5 Americans are even interested in this technology, much less ready to invest in it. Needless to say, you haven't missed your window of opportunity. 

Think about how many amazing technologies you've watched soar to new heights while you kick yourself thinking, "I knew about that technology before everyone was talking about it, but I just sat on my hands." 

Don't let that happen again. This time, it should be your family telling you, "I can't believe you knew about and invested in that technology so early on."

That's why I hope you take just a few minutes to access the exclusive research our team of analysts has put together on this industry and the one stock positioned to capitalize on this major shift.

Click here to learn about this incredible technology before Buffett stops being scared and starts buying!

David Hanson owns shares of Berkshire Hathaway and American Express. The Motley Fool recommends and owns shares of Berkshire Hathaway, Google, and Coca-Cola.We Fools don't all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. The Motley Fool has a disclosure policy.

©1995-2014 The Motley Fool. All rights reserved. | Privacy/Legal Information