SPOT - Sirius XM Holdings: Buy Sell or Hold?
2024-07-14 13:13:00 ET
Satellite radio veteran Sirius XM Holdings (NASDAQ: SIRI) broke out of a long standstill in 2023, but not in a good way. After trading sideways for two and a half years, Sirius' stock chart started to buckle. The trading pattern turned volatile last year, falling as much as 41% with a peak gain of 34%, before ending the year just 6% lower.
The bears are winning the Sirius battle in 2024. The stock is down by 33% year-to-date, and that's after climbing out of the 54% hole it visited in June. What's driving these wild swings, and how should investors approach Sirius XM stock today?
First, let's crunch some financial data. Sirius XM's price-to-earnings (P/E) ratio stands at a relatively modest 10.9. The stock looks affordable compared to its historical averages, and certainly in the context of modern media services. For example, Netflix (NASDAQ: NFLX) sports a P/E ratio of 45.2 and Spotify (NYSE: SPOT) is exploring all-time highs with a $59 billion market cap despite negative earnings.
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Sirius XM Holdings: Buy, Sell, or Hold?