This Week in Sirius XM Radio

There's never a dull week with Sirius XM Radio.

Mar 8, 2014 at 8:45AM

Things never get dull for the country's lone satellite-radio provider. Shares of Sirius XM Radio (NASDAQ:SIRI) closed at $3.51, down 2.8% on the week. The media darling's slide was trumped by Nasdaq's 0.7% uptick on the week.

There was more going on beyond the share-price gyrations, though. Apple (NASDAQ:AAPL) introduced CarPlay, making it easier for drivers to access its audio entertainment offerings. JANA Partners initiated a stake in Sirius XM. And on the streaming front, MKM Partners upgraded Pandora (NYSE:P)

Let's take a closer look.

Apple wants the driver's seat
Apple's next battlefield may be the dashboard. The consumer-tech giant introduced CarPlay on Monday, a platform that will make it easier for iPhone owners to use Siri -- and we're not talking about Sirius XM's ticker symbol -- to access information and audio entertainment from their car speakers. 

The ability to check voicemails, make calls, and use Apple Maps to navigate around may not be such a big deal to Sirius XM. Many automakers already offer similar, if not better, platforms. However, CarPlay also makes it easier to stream Internet radio and podcasts as well as dive into an iPhone's stored tracks. 

Sirius XM has been able to grow its self-pay subscriber base despite innovations in the area of in-car entertainment. It also bears pointing out that accessing streaming apps isn't as free as one might think unless they happen to have unlimited data plans. However, Apple's entrance into this market can't be ignored. It tends to attract attention, and that explains why Mercedes-Benz, Volvo, and Ferrari have already implemented CarPlay with most of the other car titans on board to roll CarPlay out in the future.

Hungry hungry institutions
JANA Partners didn't merely dip into Sirius XM recently. The hedge fund initiated a position in the satellite-radio monopoly with a whopping 50 million shares. JANA is buying at an interesting time, and it's likely banking on having Liberty Media (NASDAQ:LMCA) sweeten its offer to acquire the remaining nearly 49% stake it doesn't currently own.

Only non-Liberty Media shares will be voting on the deal, so JANA could be trying to stack the deck in its own favor. But it's not enough ammo to shoot the deal down. It's not that 50 million shares aren't a lot, but it's less than 1% of the shares outstanding. However, JANA's presence could signal that other activist hedge funds may be trying to get Liberty Media to pay more if it wants to own all of Sirius XM.

Streaming an upgrade
Pandora's had a pretty spectacular run, more than quadrupling since the beginning of last year.  

MKM Partners upgraded Pandora on Wednesday. It may not seem like much of a boost -- going from "sell" to "neutral" -- and its price target of $39 is essentially where the stock was at the time of the move. However, this is essentially another bear throwing in the towel on the market's leading provider of streaming audio that served up 1.38 billion hours of content during the short month of February alone.

6 more stock ideas pumping up the value
It was a quiet week for Sirius XM, but the new week isn't likely to be dull. While we wait for the latest news to roll in, we can keep looking around the market for other great investing ideas. Why not start with the Fool's own David Gardner, who has proved the critics wrong time, and time, and time again with stock returns like 926%, 2,239%, and 4,371%? In fact, just recently one of his favorite stocks became a 100-bagger. And he's ready to do it again. You can uncover his scientific approach to crushing the market and his carefully chosen six picks for ultimate growth instantly, because he's making this premium report free for you today. Click here now for access.

Rick Munarriz has no position in any stocks mentioned. The Motley Fool recommends Apple and Pandora Media and owns shares of Apple, Liberty Media, Pandora 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."

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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." 

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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.

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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.

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