Sirius xm stock forecast tracks industry P/E ratios

Sirius XM stock forecast tracks industry P/E ratios, showing it trades slightly below sector average, suggesting possible value opportunity for long-horizon investors. Can Sirius XM Stock Bounce Back From Tuesday's 12% Drop? was originally published by The Motley Fool Falling Subscribers - Sirius XM follows a subscription-based business model, with 77% of its 2024 (so far) net revenue coming from predictable subscriptions, compared to 20% from advertising. This makes it more resilient to economic downturns, as advertising budgets are typically the first to be cut during weaker economic periods. However, if the larger source of revenue experiences a decline, it becomes a concern. Sirius XM’s total subscriber metric declined 2% year-over-year (y-o-y) to 33.2 million, including paid promotional subscribers, in the first nine months of FY 2024. That’s about 800k fewer subscribers than it reported at the end of 2021. This decrease can be attributed to lower vehicle conversion rates and increased vehicle-related churn. Current trading volume remains steady, and investor sentiment is supported by stable subscription revenue growth. Watch for earnings surprises in upcoming reports.