Why is Sirius so Cheap?

New cars are coming back soon.

Andrew Willis 8 April, 2022 | 4:28AM
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Andrew Willis: How many used car buyers go out of their way to sign up for a Sirius XM (SIRI) subscription for their vehicle? And what percentage of subscribers originate from a free trial, in a new car purchase at a dealership?

Now consider what happens when the supply of new cars is cut off… The market punished the stock, and two years on from the depths of the pandemic, it still hasn’t fully forgiven it. Meanwhile, as senior equity analyst Neil Macker notes, the supply issues aren’t expected to last for long.

By the 2nd half of this year, we should start seeing more new cars on the lots, before reaching pre-pandemic sales levels next year. Maybe this stock is worth a trial and it might be better than free.

For Morningstar, I’m Andrew Willis.

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Securities Mentioned in Article

Security NamePriceChange (%)Morningstar Rating
Sirius XM Holdings Inc6.23 USD1.14Rating

About Author

Andrew Willis

Andrew Willis  is Senior Editor at Morningstar.ca. Follow him on Twitter @AndrewWillisCDN.

 

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