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Summary

  • Sirius has clear advantages over terrestrial radio.
  • But adoption of Bluetooth and related smartphone applications in cars makes core product unnecessary.
  • Technical patterns inconclusive.

In this episode, Nick discusses Sirius XM Radio (NASDAQ:SIRI). Alternatives to its core radio service such as Pandora (NYSE:P), Spotify, using downloaded MP3s in cars provide plenty of cheaper (if not entirely free) alternatives to Sirius's commercial free music. Podcasts provide a completely free alternative to talk radio. A newer generation of cars that link Bluetooth directly to smartphones allow consumers to avoid the use of the radio entirely when driving. Valuations are also unfavorable.

*Correction: Daily Volume amount 50 million shares, not 272 million per day as mentioned in the video.

Disclosure: The author has no positions in any stocks mentioned, and no plans to initiate any positions within the next 72 hours. The author wrote this article themselves, and it expresses their own opinions. The author is not receiving compensation for it (other than from Seeking Alpha). The author has no business relationship with any company whose stock is mentioned in this article.

Source: Sirius XM Radio: Bullish Or Bearish?