Have We Hit Peak Sirius XM?
There comes a time when a longtime growth darling burns out. Sirius XM Holdings (NASDAQ: SIRI) seems to be -- on the surface -- nearing the end of its rock star days.
User growth is slowing, with total subscribers rising a mere 2.5% over the past year. The acquisition of Pandora earlier this year is inflating top-line results in the near term, but if it wasn't for that timely purchase, this would be the fifth consecutive year of sluggish single-digit growth. Revenue gains have decelerated in five of the past six years.
One can argue that you haven't peaked if you're still taking steps in the right direction, but bears have long argued that the trends are not Sirius XM's friends. Auto sales are tailing off, particularly among younger drivers, who would fuel the next generation of its subscribers.
Source Fool.com
