This Week in Sirius XM Radio

Satellite radio is always on the move with Sirius XM.

Apr 5, 2014 at 7:30AM

Things never get dull for the country's lone satellite radio provider. Shares of Sirius XM Radio (NASDAQ:SIRI) moved higher on the week, climbing 1.3% to close at $3.20.

There was more going on beyond the share-price gyrations, though. Avis Budget Group (NASDAQ:CAR) announced that a majority of its rental cars now have in-dash satellite receivers. Sirius XM also inched higher on news that Liberty Media (NASDAQ:LMCA) was raising money in an asset sale. On the streaming front, Pandora (NYSE:P)offered up somewhat encouraging metrics for March.

Let's take a closer look.

I'm a loaner, Dottie -- a rebel
Drivers looking to rent a car from Avis or Budget now have a pretty good chance of landing in a car with a Sirius XM receiver. Avis Budget Group revealed that receivers are now installed in 60% of their available rentals.

It's not a free perk. Renters have to pay $6.99 for the first day and $3.99 for every day after that. The rate is capped at $19.99 for an entire week. Yes, that's more than an entire month of the rental, but obviously Avis Budget isn't going to offer premium radio unless it can profit from the arrangement. It should still be a positive for the satellite-radio operator as it increases the platform's exposure.

Turning the page on bookstores
John Malone is mixing things up. Liberty Media is slashing its stake in Barnes & Noble (NYSE:BKS) from 17% to less than 2%. The move to reduce its exposure of the troubled retailer by 90% made shares of Sirius XM move 3% higher on Wednesday.

Why? Well, some investors may think that Liberty Media's move to raise money by unloading a sizable position could be deployed to making a sweetened offer for Sirius XM. That doesn't make a lot of sense, though. Liberty Media was proposing an all-stock offer, and it wouldn't have needed money to add more of a premium. However, it will still be interesting to see what Liberty Media does with the proceeds from the Barnes & Noble sale.

Pandora rocks
We only have a couple more months of having Pandora offer up monthly performance metrics, so we may as well make the most of it.

The leading music streaming service closed out March with 75.3 million active listeners. That's flat with February's user count, but an 8% gain over the past year. Though sequential growth is flat, folks are tuning in more, as listener hours hit a record 1.71 billion, 14% ahead of what it was serving up a year earlier. Pandora will stop reporting monthly numbers after May, but it seems to be moving in a good direction in terms of usage as we get there.

A Sirius future
It was an interesting week for Sirius XM. The new week isn't likely to be dull -- and the Oracle of Omaha almost never is. Warren Buffett has made billions through his investing and he wants you to be able to invest like him. Through the years, Buffett has offered up investing tips to shareholders of Berkshire Hathaway. Now you can tap into the best of Warren Buffett's wisdom in a new special report from The Motley Fool. Click here now for a free copy of this invaluable report.

Rick Munarriz has no position in any stocks mentioned. The Motley Fool recommends Berkshire Hathaway and Pandora Media and owns shares of Barnes & Noble, Berkshire Hathaway, 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."

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