LYV - Why Sirius XM Sold Off On CEO And CFO Changes
In an at least surprising, if not outright shocking move, Sirius XM (SIRI) yesterday announced major management changes: Not only a board member and the CFO are leaving, but also the CEO is changing. The stock fell 5% on the news and has hugely underperformed the recovery rally since March, despite relatively steady business performance.
We can only guess the reasons for this underperformance. High-probability candidates are:
- Howard Stern's contract renewal coming up, i.e., the fear of Howard Stern following Joe Rogan's footsteps and leaving for Spotify (SPOT).
- Less new subscribers