Sirius XM Radio's Shares Got Crushed But Recovered: What You Need to Know
Although we don't believe in timing the market or panicking over market movements, we do like to keep an eye on big changes -- just in case they're material to our investing thesis.
What: Shares of satellite radio monopoly Sirius XM Radio (NAS: SIRI) plunged as far as 13% in a sudden rush of downside action this morning but have since recovered to a 2% gain on the day.
So what: A mixed car-sales report shouldn't dunk Sirius like this, and a programming deal with the NHL should be positive news -- unless Sirius investors hate hockey, of course. A more likely culprit behind this temporary drop is SeekingAlpha, which published a series of Sirius-bashing articles this morning.
Now what: Despite its nearly $6 billion market cap and prodigious share volume, Sirius remains a nervy penny stock until further notice. Sirius 2.0 can't come fast enough for this perennially beleaguered operator, especially while rivals Spotify and Pandora Media (NYS: P) go from strength to strength. You know, a reverse split wouldn't hurt anybody but could keep the Nasdaq off Sirius' back for the foreseeable future. Wouldn't life be nicer without a constant delisting threat hanging over the stock -- and an easily erased one at that?
Interested in more information about Sirius XM Radio? Add it to My Watchlist.
At the time this article was published Fool contributor Anders Bylund holds no position in any of the companies discussed here. We Fools may not all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. The Motley Fool is investors writing for investors.