Well look what the cat dragged in. SiriusXM just reported its latest financial colonoscopy and let’s just say it was less “Howard Stern Uncensored” and more “Billy Mays at 2am” (Wait there’s…more bad news!). In short, the satellite radio OG is projecting $8.5 billion in revenue for 2025—down from the $8.675 billion it’s expecting to pull in this year. Translation: they’re calling 2025 the high-water mark before the tide starts receding. Hell or high-water? Both, baby.  

(Source: Pinterest) 

Now, before you roll your eyes and think, “Who even listens to satellite radio in 2024?”---let me just say, you’re correct. SiriusXM’s adjusted EBITDA is expected to dip from $2.7 billion this year to $2.6 billion in 2025. Free cash flow, though? That’s actually slated to rise to $1.15 billion next year, up from $1 billion in 2024. Meaning it looks like they’re skimping on the fancy dinners but still paying the rent. Respect.

On the other hand, here’s where things get thicc and juicy: The company’s strategy update. Simply put, SiriusXM is doubling down on its bread and butter—automotive subscribers. Yes sir, those free trials you get when you buy a car are still the lifeline. Forget streaming wars with Spotify or Apple Music; SiriusXM is basically saying, “We’re sticking to what we know” all while they’re trimming $200 million in costs next year. Because, you know, nothing says “growth strategy” like cutting costs. Bold move, Cotton. Let’s see if it pays off for ‘em. 

(source: Yahoo Finance) 

Unsurprisingly, Wall Street wasn’t exactly dancing to the tune of this outlook. Investors yeeted shares by -12.2%, faster than my old-school dad flies through the “channel guide”. Hell, even Goldman Sachs chimed in with a downgrade, slashing its price target from $23 to $21 and keeping a “Neutral” rating—presumably because just calling it “Meh” doesn’t sound professional. In addition, Goldman cited “greater-than-anticipated pressures” on subscriptions and advertising. Translation: people aren’t paying for premium radio when TikTok is free.

(Source: Investing.com) 

Now with that said, SiriusXM did relaunch its streaming service recently, only to reallocate resources back to its core in-car audience. But when it comes to the brass tacks of SiriusXM’s trajectory—they’re playing defense, not offense. And naturally, Wall Street isn’t here for it. 

LIVE look at Wall Street, probably (Source: Tenor) 

Management’s strategy is giving us all serious “Blockbuster trying to stick to DVDs” energy—meaning if you’re holding SIRI shares, it might be a good idea to start praying for a used car sale rally. Or, better yet, for Howard Stern to start pulling Wack Pack pranks again. Either or works, just anything to keep this Titanic from sinking LOL. 

In the meantime, filter this through a brain-cell and place your bets accordingly. As always, stay safe and stay frosty, friends! Until next time…

P.S. Welp, you friggin’ missed it. I told you it wouldn’t last forever, but hey… luckily for you, Stocks.News premium is still cheaper than a night out at the strip joint AND you may even get a bonus happy ending from it (read: EXPLOSIVE TRADE). Alright, alright, all jokes aside—Stocks.News premium is sitting at $20 a month. What does that cost you? Well, if you look at your monthly expenses… It's freakin’ miniscule. But unlike your monthly expenses, this $20 could get you a front row seat with the market’s most explosive trade setups BEFORE they make headlines. So again what does $20/m for Stocks.News cost you? Well considering we are averaging AT LEAST one triple digit winner a week, I’ll leave that up to you—but in the end, it may cost you way more than you think. Click here ASAP to get the full-platter of details you’ll get as an exclusive Stocks.News premium member. 

Stocks.News holds positions in SiriusXM Holdings as mentioned in the article.