Goldman Brings Sirius-XM Crashing Back To Earth (SIRI, XMSR)

Michael Learmonth | June 19, 2008 11:30 AM

Shares of Sirius Satellite Radio (SIRI) and XM Satellite Radio (XMSR) are getting hammered after a Goldman Sachs analyst cut his price targets for both and argued that young people would really rather have an iPod or an iPhone.

Analyst Mark Wienkes dropped his price target 43% for XMSR from $11.50 to $6.50 and 32% for SIRI from $2.25 to $1.75. Sirius shares are down 13% in morning trading, to $2.12 a share; XM is down 17% to $8.54. Thanks to Goldman, both are trading at multi-year lows.

Sirius and XM's 16-month wrangle with the Feds over their proposed merger has proven a nice distraction to the fundamentals of the satellite radio business. The stocks got a lift Monday after FCC chairman Kevin Martin recommended approval of SIRI's buyout of XM. But both companies are facing declining growth and cash flows. Writes Wienke:

With core demand for satellite radio falling amongst the younger demographics, vs. rapid increases for MP3 players and other new technologies (3G iPhone streaming audio), and declining core ARPU, we see long-term risk to the outlook. Our analysis is based on continued retail channel weakness, 2H08 OEM production cuts, rising churn and our assumption that a’ la carte pricing will not materially impact demand.

Sounds right to us. As we argued on Monday, satellite radio is only going to find itself finding more and more competition -- like AOL's streaming radio app for the new iPhone.

Subscribe to SAI: RSS, email newsletter (no spam)

Share:

< Prev. Story

Next Story >

33 Comments

Henry Spitzer said:

Jun. 19, 12:29 PM

Hey Michael-
What sort of ROI has Sirius been getting on the $500M deal that Mel signed Stern to several years back? I'd like to know what the churn rate (subscriber turnover) is annually for Stern. How many subscribers does he have and how much has he been responsible for bringing to Sirius?

Anton said:

Jun. 19, 1:17 PM

There is no Sirius without Stern.

George Creedle said:

Jun. 19, 3:01 PM

Anton hit it on the head. SIRI better re-sign Stern or "Its over, Johnnie, It's OVER!". I bailed on their crappy sat radio receivers and now listen over the internet. Which means that sat infrastructure is a big boat anchor, valuable only to coast-to-coast truckers. Everyone else will be listening to broadband entertainment delivered thru iPhones.

willi143 said:

Jun. 19, 3:45 PM

Satellite radio is a unique medium, and it's nice to have after you tire listening to all your MP3 "playlists" and crappy internet stations. The major automakers are investing heavily in satrad and believe in it tremendously. Listning over the internet to Sirius or Xm (available FREE with radio sub.) is far superior to most anything out there. The merger will surely thrust Satellite into the mainstream of the radio world and makes it a good, and I might say even better, low-cost alternative to the other media sources out there.

sreil08 said:

Jun. 20, 4:27 PM

The FCC has finally given a conditional nod to the merge. It seemed all this headline hype was proving favorable for SIRI but the past few weeks have shown its really hurting them. SIRI has become more bearish with hype of the merger on the verge of being completed. Price targets are set high, but the price is at its 52 week low. I like to check the sentiment trend
( http://www.predictwallstreet.com/forecast.aspx?symbol=siri )and compare it with the actual quote. The sentiment today is again in the bearish zone and the price is dropping. I’m curious to see what the sentiment will be once the merger is actually settled and the buildup dies down.

rohan money (URL) said:

Sep. 09, 1:07 AM

In game groups called guilds which have the opportunity to rule each town within Rohan. Other guilds may wage civil war with the ruling guild, with the chance to gain rohan money to control of their own.

seal cegel (URL) said:

Sep. 12, 4:05 AM

I have remember that as the company of complaint or regret, and the seal cegel that you bought for me. as long ad you are happy than me.

the earth said:

Sep. 12, 4:40 AM

How to rip DVD to other formats on Mac OS X? You can use this DVD Ripper for Mac.

Mac Video Converter is another professional conversion software to convert video on mac.

UserName said:

Sep. 14, 10:06 PM

digital signage advertising display[bdfgdjgbehagie]

Anarchy online gold (URL) said:

Sep. 17, 3:45 AM

If you have no Anarchy online gold you will find no interesting in Anarchy Online.

Sho Online Mun (URL) said:

Sep. 20, 1:20 AM

I have played for about two years old. I also have a better strategy which is the way of gaining Sho Online Mun.
I thought that now grasp C to exchange Sho Online gold can waste too much of time and the result also could not gain more Sho Mun.
I explain here, beat yellow, red and blue gemstones which there are not many people use these three gemstones and therefore could not exchange for the number of Sho gold.
If you move your character to a gateway, a full map will appear allowing you to buy Sho Online gold to choose a zone

小说 (URL) said:

Sep. 22, 9:52 PM

Do you have a question about our cleaning services? Please contact us by e-mail for more information. Or, call 949-573-1117 (office), or 949-842-7598 (cell/voice mail) to schedule a FREE CONSULTATION.
OUR PROMOTIONS
$70 FIRST-TIME RESIDENTIAL CLEANING: Includes - Two (2) Rooms plus FREE cleaning in the following areas: Kitchen (Outside oven, refrigerator); Single Bathroom

Print and present the online coupon to a supervisor at time of initial in-home consultation to receive this special online promotional discounted rate.

Please click here or see our "Promotions" link above for more details.
日本a级片性交 A级片黄色电影网站三级片黄色三级片性爱电影黄色电影下载免费日本a级片一级免费三级片幼女成人黄色电影日本a级片在线观看人兽性交人与兽性交成人卡通日本三级影片三级片下载乱伦电影 av电影口交电影免费黄色电影日本a级片网站黄色电影网 Tim, Magoo: Lobbed your questions/assertions to BW and will update if they get back. I gather they've received similar queries. Should note that BW says doesn't say that *all* of SAP's won't work with apps -- just their "industrial strength" programs. Not sure exactly what that distinction means but hope to find out. 日本黄色电影日本成年电影网站日本a级片电影台湾18 台湾18岁网站台湾18电影院日本A片性交视频幼女性交一级片一级片免费观看一级片电影欧美一级片鹿城影院鹿城图片韩国性电影性生活电影性伦理电影一级片在线观看三级片网站黄色电影网址肛交图片乱伦性教育电影美女露点外国一级片成人无码熟女性电影在线看免费黄色电影网站 18电影网在线a级片免费性爱电影鹿城 av小电影人与兽的电影熟女电影 Our friendly staff has been providing our Orange County customers with cleaning services for residential dwellings and commercial properties since 2003.

We specialize in providing affordable, reliable cleaning and maintenance services for:

+ Commercial: Office Buildings, Office Suites, Construction Job Site Clean-Up, Janitorial/Maintenance.

+ Residential: House, Condominium, Apartment, Rental Property, Vacation Property.

We offer flexible scheduling with competitive rates available for weekly, bi-weekly, and monthly service and maintenance, depending on your needs and budget.

Ask us about our 24-Hour cleaning services. We're available for around-the-clock service as needed!!!

buy rupees (URL) said:

Sep. 24, 3:13 AM

The better at the beginning of the line-up for the three chou a division operation, in the months to buy rupees will be even better roudian knight

ragnarok online zeny (URL) said:

Sep. 24, 3:13 AM

It is said that if you can have ragnarok online zeny in Ragnarok Online you will almost be without equal.

wow gold (URL) said:

Oct. 02, 4:18 AM

You may compare the price then buy wow gold from us . It will be a great fun that you will save huge money. We know what a

gamer need so that we will provide you a really instant way of delivery, if you buy world of warcraft gold, gold wow from

us. Just place your order to buy cheap wow gold from us then feel the world class service.

treeddr (URL) said:

Oct. 08, 9:22 AM

We are sure that you cant get such an outstanding wow power leveling,service as ... Such as the Burning Crusade comes,wow power leveling, we provide a cheap wow power leveling, Spending points on the Elemental tree helps wow power leveling,to improves offensive spells and totems; WoW Gold,the Enhancement tree improves melee skills,and Restoration helps with healing.If your priority is towow power levelingyour,Shaman as quick as possiblewow gold, spend points on talents that will increase your damage. World Of Warcraft gold,Whether you prefer to kill enemies with ranged spells,World Of Warcraft gold, or up close with brutal melee World Of Warcraft gold, is entirely up to you World Of Warcraft gold, You will soon have to complete your Shaman class quests,WoW Gold, the first being the “Call of the Earth”.WoW Gold, Orcs and Trolls will be able to get WoW Gold, this quest from Canaga Earthcaller World of warcraft Power Leveling,World of warcraft Power Leveling,wow power level,wow power leveling,wow power level,ffxi gil,ffxi gil,ffxi gil,ffxi gil,final fantasy xi gil,final fantasy xi gil,final fantasy xi gil,final fantasy xi gil,guildwars gold,guildwars gold,guild wars gold,guild wars gold,lotro gold,lotro gold,lotr gold,lotr gold,maplestory mesos,maplestory mesos,maplestory mesos,maple story mesos,maplestory mesos,runescape gold,runescape money,aoc gold,age of conan gold,aoc gold, age of conan gold,aoc gold,FFXI Gil,final fantasy gil,everquest plat,eq2 plat,eq2 gold,everquest platinum,rs gold,silkroad gold,Chinese Tea,Green Tea,China Tea,Black tea,Oolong Tea,White tea,Herbal Tea,Jasmine tea,Chinese Tea,Green Tea,Childrens Clothes,Childrens clothing,Baby Clothing,Pet products,dog bed,pet supply,pet product,Dog Collar,Dog carrier,Dog Clothes,Baby Clothes,newborn clothes,infant clothes,boys clothes,boys clothing,girls clothing,girls clothes,baby boy clothes,baby boy clothing,baby girl clothes,baby girl clothing,dog clothes,dog collars,buy warhammer gold,buy warhammer gold,buy warhammer gold,warhammer gold,warhammer gold,warhammer gold,礼品公司,商务礼品,礼品采购,礼品,

bjloving18 said:

Oct. 16, 4:34 AM

bjloving18
ibj2008
婚纱摄影
卷板机
股骨头坏死
弯管机
海岛游
国旅
澳洲旅游
自由行
出境游
超声波测厚仪
粗糙度仪
红外测温仪
超声波探伤仪
涂层测厚仪
北京印刷

barbara (URL) said:

Oct. 22, 7:29 PM

640-802 Goldman Brings Sirius-XM Crashing Back To Earth (SIRI, XMSR) What kind of look is that? What kind of look is that? Have some respect? I can't take it (anymore) .

dfgfhjj (URL) said:

Oct. 28, 4:58 AM

http://r8.mobilestyle.jp/mkopuyu/

bret said:

Oct. 29, 7:25 PM

cheap oil painting reproduction

mclovin said:

Oct. 30, 6:57 PM

The premier seller of air jordans and air force ones

dsfsadds (URL) said:

Nov. 05, 4:11 AM

powerleveling wow