3 Reasons Sirius XM Stock Can Rise in the Fall

Core Viewpoint - Sirius XM Holdings has reached a 12-year low in stock price, attributed to slow growth, a plateauing subscriber base, and the impact of stock conversions and splits [1]. Group 1: Market Conditions - The Federal Reserve's recent decision to lower the federal funds rate by 50 basis points is expected to benefit Sirius XM, particularly in the auto market where satellite radio is primarily consumed [3]. - Retention rates for Sirius XM remain high, with a monthly churn rate of 1.5%, but attracting new subscribers is a challenge [4]. Group 2: Political Advertising Impact - The upcoming election season is anticipated to increase political advertising revenue, which could benefit Sirius XM as 20% of its revenue comes from ads on its ad-supported channels [5]. Group 3: Stock Valuation - Sirius XM's stock has dropped 56% in 2024, trading at just 7 times trailing earnings, with a yield of 4.4%, indicating it may be undervalued despite challenges [6].