Sirius XM Radio (NASDAQ: SIRI ) finally introduced its streaming customized radio platform late last week. It's still in beta, but one can't ignore a company with 23.9 million satellite radio subscribers. These are folks who actually pay to hear audio content, and the same can't be said for most of Pandora's 67.1 million active listeners.
This is where Pandora is the most vulnerable.
Pandora has tons of debt and is not profitable, nor will it be in the near future.
SIRI had about $3.0 billion of total debt and $774 million of cash and equivalents. SIRI's significant debt load could negatively affect the stock if the company does not meet its debt obligations.
More than 3 time debt/equity ratio. Oh yeah, that's going to play well.