What Happened?
Shares of satellite radio and media company Sirius XM (NASDAQ: SIRI) jumped 2% in the morning session after company executives expressed confidence in renewing its contract with star host Howard Stern, dispelling recent rumors about his potential departure.
The comments, made at the Bank of America 2025 Media, Communications & Entertainment Conference, addressed speculation that Stern had been fired, as his current deal is set to expire at the end of 2025.
SiriusXM's CEO, Jennifer Witz, stated, “I’m confident we’ll get to the right place,” emphasizing that Stern has been “core to our platform for over 20 years.” Adding to the positive sentiment, the company also announced it is teaming up with entertainment company IGN to produce a new radio show focused on gaming.
After the initial pop the shares cooled down to $24.00, up 1.8% from previous close.
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What Is The Market Telling Us
Sirius XM’s shares are very volatile and have had 21 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 16 days ago when the stock dropped 3.7% as the major indices continued to pull back, with technology stocks accounting for most of the market's largest decliners.
A key reason for this trend is that much of the recent market gains were concentrated in the "AI trade," which includes these large technology and semiconductor companies. So this could also mean that some investors are locking in some gains ahead of more definitive feedback from the Fed.
Despite the downturn, some analysts viewed this as an opportunity to own some of the "Core AI winners." Dan Ives of Wedbush Securities commented, "In our view, the tech bull cycle will be well intact for at least another 2-3 years, given the trillions being spent on AI infrastructure/software/chips/power/apps looking ahead. This remains our tech playbook and investor roadmap."
Additionally, mixed earnings reports from retailers, such as Target, added to the market's weakness.
Sirius XM is up 8.6% since the beginning of the year, but at $24.00 per share, it is still trading 17.5% below its 52-week high of $29.10 from September 2024. Investors who bought $1,000 worth of Sirius XM’s shares 5 years ago would now be looking at an investment worth $426.97.
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