Does Sirius XM's Broadcasting Strategy Signal a Buy for the Stock?

Sirius XM SIRI shares have lost 42.3% in the trailing 12 months, underperforming the Zacks Consumer Discretionary sector’s decline of 10.9%. In contrast, the Zacks Broadcast Radio and Television industry has risen 29.1%.

The company’s underperformance can be attributed to its decline in subscriber revenues and slow subscriber growth. This loss in momentum is due to tough competition in the streaming market from the likes of Apple AAPL, Spotify SPOT and Amazon AMZN. Apple acquired Shazam and Asaii, which strengthened its presence in the music streaming space, while Spotify partnered with Samsung and Google to grow its subscriber base. Amazon offers Prime Music, which provides access to more than 100 million songs and curated playlists to all Prime members. Shares of Apple and Spotify have returned 11.9% and 62.9%, respectively, in the trailing 12 months, while Amazon has lost 7.7%.

To navigate the fierce streaming market, SIRI has carved out a differentiated path by doubling down on its broadcasting strategy. With strategic partnerships with automakers like Tesla and a focus on premium, exclusive content, the company is positioning itself for sustained growth over time. Let us take a closer look at how it is executing this strategy.

SIRI Expands Broadcasting Coverage

Sirius XM announced its comprehensive broadcast plans for Masters Week, running from April 5 to 13. As the exclusive audio broadcaster of the Masters Tournament, it will offer live coverage of all four days of play, along with daily talk shows, specials and more for listeners across North America. This is likely to aid the company’s subscription revenues as it will be attracting more subscribers, especially golf fans, to its platform.

Sirius XM Holdings Inc. Price and Consensus

 

Sirius XM Holdings Inc. price-consensus-chart | Sirius XM Holdings Inc. Quote

In addition to golf, SIRI is providing the most comprehensive audio coverage of the 2025 Major League Baseball (MLB). Subscribers will have access to every regular season and postseason game, along with year-round in-depth analysis on the exclusive MLB Network Radio channel.

Formula 1 (F1) and Sirius XM have announced a multi-year extension of their broadcasting agreement. The deal ensures that Sirius XM will continue to provide coverage of every F1 race across North America through 2027. Furthermore, Sirius XM is providing nationwide coverage of NCAA March Madness, catering to basketball fans.

These moves highlight Sirius XM’s commitment to increasing audience engagement across key interest areas. The company is standing out by focusing on exclusive content and smart partnerships. By reaching loyal niche audiences like sports fans, it’s building a strong path for sustained growth.

SIRI’s Earnings Estimate Revisions Show Upward Trend

The Zacks Consensus Estimate for SIRI’s first-quarter 2025 earnings is currently pegged at 70 cents per share, indicating an improvement of 11.11% over the past 90 days. The estimate indicates no year-over-year change.

The consensus mark for revenues is pegged at $2.08 billion, indicating a year-over-year decline of 3.58%.

SIRI beat the Zacks Consensus Estimate for earnings in two of the trailing four quarters, missing once and matching once, with the average negative surprise being 41.41%.

Find the latest EPS estimates and surprises on Zacks Earnings Calendar.

SIRI Stock: Buy, Sell or Hold?

There is strong confidence in SIRI’s long-term prospects, driven by its strategic investments in expanding and diversifying its content. The company continues to strengthen its platform with a wide range of offerings across music, politics, news and sports. Moreover, as there are no other satellite radio operators in the United States, Sirius XM faces no direct competition in this space, reducing the risk of new entrants trying to build a similar presence. Running a subscription-based business also works in the company’s favor, as it brings in a recurring stream of revenues.

SIRI currently carries a Zacks Rank #2 (Buy), suggesting a compelling entry point in the stock for investors now. You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.

Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report

This article originally published on Zacks Investment Research (zacks.com).

Zacks Investment Research