Why Does Wall Street Hate Sirius XM?
A week ago today, Sirius XM Radio (Nasdaq: SIRI) should have deflated the last of its critics. The satellite-radio juggernaut delivered head-turning results for the third quarter. It posted breakeven results for the first time in its red-inked history. It posted a sequential gain in subscribers for the first time since last year. Trading at $0.61 before the blowout quarter, the stock popped to open at $0.65 on the news — hit an intraday high as $0.69 — before closing at $0.64. The stock has been meandering ever since, though a refreshing Standard & Poor’s credit upgrade last night has pushed the stock to as high as $0.67 a share this afternoon. Few will scoff at a 10% gain on a percentage basis over the past week, but many would argue that the upbeat developments deserve a more robust ticker tape parade. This was a company that was on the brink of bankruptcy in February, and now S&P is upgrading its credit — from “stable” to “positive” — to quell any cries of a near-term financial
