Sirius XM Holdings Inc. (NASDAQ:SIRI), Pandora Media Inc. (NYSE:P) And Their Stock Performance

Posted by Lynn Eisler December 13, 2013 0 Comment 4399 views


Sirius XM Holdings Inc. (NASDAQ:SIRI) is trying to bet on the latest buzz and in a related attempt the company recently announced to launch “The Nelson Mandela Music Tribute Channel” towards celebrating the life and legacy of Nelson Mandela. However the stock has fell more than 7% in past one week and is currently trading around $3.47, well below its 50 day and 200 day moving averages of $3.70 and $3.69.

Tribute to Nelson Mandela

Sirius XM Holdings Inc. (NASDAQ:SIRI) will air the dedicated channel from Friday, December 13 through Sunday, December 15 on SiriusXM channel 111. The exclusive programs will be aired via satellite as well as could be accessed on its website siriusxm.com and on smartphones and other connected devices through SiriusXM Internet Radio App. The new channel will complement radio broadcaster’s ongoing special programming dedicated to Nelson Mandela.

The President and Chief Content Officer at SiriusXM, Scott Greenstein expressed, “As the world and his country mourn Nelson Mandela, we want to provide our listeners a collection of music and words that pay tribute to this extraordinary man and his life’s work as a true champion for human rights.”

Pandora Outshines Sirius or Vice Versa

Pandora Media Inc. (NYSE:P)’s stock has delivered more than 190% returns year to date as compared to approximately 20% returns delivered by the shares of Sirius XM Holdings Inc. (NASDAQ:SIRI). Though Pandora Media Inc. holds solid promises with its new-age radio services delivery platform, it is largely relying on advertising and is still making losses. This is in contrast to SiriusXM that charges subscription charges and earns the bulk of revenue from it to drive higher profits.

Recently a Seeking Alpha contributor Trefis.com compared the average revenue per user for both these radio broadcasters and concluded that Sirius XM Holdings Inc. (NASDAQ:SIRI) has outshined in terms of monetizing its user base with total annual revenue of $155 per user as compared to approximately $9.40 for Pandora Media Inc. (NYSE:P).



About Lynn Eisler

Lynn Eisler is a national news reporter focusing on economic issues, data analysis and the financial health of state and local governments. Lynn has been honored with the H.L. Mencken Award for Investigative Reporting, the Champion of Justice Award for reporting on the drug war, and the John Hancock Award for business reporting. Lynn was also a Knight Medical School Fellow at the University of Michigan.

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