>> The Question is is the blast over? Is it down from here?
If the "blast" is SIRI's runup of last week, who knows? It SHOULD be over, as it was unwarranted in the first place. There is no apparent good news to have caused it (although there is buyout speculation, it is just that, speculation). The company is still executing poorly, spending wildly, failing to get key OEM deals rolling, and way, way behind XM.
If the "blast" is the continued sub growth of both companies, the answer is "no", it isn't over. Both companies will continue to add subs for a long time yet. XM will have added over 400K subs in Q4. SIRI will have added a quarter that I expect, perhaps a few more, WHICH IS MAJOR PROGRESS FOR SIRI.
In general, SDARS is going to make money for everyone who gets in it. But there continues to be much more risk in SIRI than in XM. In particular, SIRI is going to have to have more cash to break even -- when they're done, they may well have two billion shares outstanding vs. XM's 275-300M. |
