How much of a threat is Pandora to SiriusXM?
People are cranking up their radios and the blacktop is heating up.
Yesterday, Internet radio leader Pandora said it had cracked 2.5 million activations through cars – more than quadruple the number it had a year ago. This is largely because Pandora is now available in more than two dozen auto brands.
Pandora’s shares are up today by more than 7% following a stock upgrade, too. Cowen and Company upgraded the stock to outperform from market perform and increased their price target from $15 per share to $22.
But, with SiriusXM in 70% of all vehicles and with a subscription model that pulled in $3.4 billion last year, how much of a threat is Pandora to SiriusXM?
On Closing Bell, Talking Numbers contributor Richard Ross, Global Technical Strategist at Auerbach Grayson, discusses the technicals. On the fundamentals is John Stephenson, Portfolio Manager at First Asset Investment Management.
To see Ross and Stephenson discuss Pandora and Sirius, watch the video above.