Is Sirius XM Stock a Buy, Sell, or Hold in 2025? | The Motley Fool
By conventional wisdom, I would think Sirius XM would be a great business to own. It turns out it isn’t. They have the widest moat—100 percent of cars in the US have their receiver preinstalled and they offer actrial service for 6 months.
The rise of Spotify and Apple Music ($10 per month) took away market share. They kept their service expensive ($15 to 23 range) for way too long and bundled too many needless channels.
They did not innovate fast enough. What their mobile app does now should what happened over 10 years ago, but it is too late.
They give away super-subsidized lengthy trials to try to recapture market share, spiraling further into debt. I am unsure why Berkshire is still a part-owner.
Finally, they have a cheaper plan in the $10 range, but everyone is so used to connecting their phone via bluetooth and streaming from their Spotify account or Apple Music.
Please do not fall into the value trap of owning their stock for their dividend.
Satellite radio is no longer the groundbreaking novelty it was when Sirius XM beamed its first commercial broadcast in 2002. Much has changed in the media landscape over the past two decades, with the once-disruptive technology being overshadowed by more convenient internet music services that most people can access via mobile broadband-connected smartphones.
Sirius XM's partnerships with global auto manufacturers, which preinstall special hardware and offer free trials of the service with new vehicles, have failed to stem the steady decline in subscribers over the last several years.