Why Sirius XM (SIRI) Stock Is Falling Today

What Happened?

Shares of satellite radio and media company Sirius XM (NASDAQ:SIRI) fell 4.2% in the morning session after Seaport Global Securities downgraded the stock to Neutral from Buy, citing the company's guidance for 2026. 

The downgrade followed the company's forecast which projected an increase in self-pay net subscriber losses compared to the previous year. The research firm also noted that growth in average revenue per user would likely slow down. This was due to ongoing promotional discounting that would partially cancel out planned price increases. The weak outlook came a day after Sirius XM reported fourth-quarter results where sales were flat year-on-year and profit per share was significantly below Wall Street's expectations.

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What Is The Market Telling Us

Sirius XM’s shares are somewhat volatile and have had 14 moves greater than 5% over the last year. In that context, today’s move indicates the market considers this news meaningful but not something that would fundamentally change its perception of the business.

The previous big move we wrote about was 21 days ago when the stock dropped 3.2% on the news that prominent market commentator Jim Cramer questioned the company's growth prospects. During a broadcast, Cramer noted that Sirius XM's primary issue was its lack of growth. He suggested that for the company to perform better, there needed to be an increase in both new and used car sales. The comments highlighted concerns about the satellite radio company's ability to expand, which appeared to weigh on investor sentiment.

Sirius XM is up 6.1% since the beginning of the year, but at $21.77 per share, it is still trading 19.7% below its 52-week high of $27.11 from February 2025. Investors who bought $1,000 worth of Sirius XM’s shares 5 years ago would now be looking at an investment worth $359.54.

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