Wall Street is bullish on the satellite radio business. Sirius XM hit a 52-week trading high of $1.27 on Monday and stayed there for the closing bell. The stock then moved higher still on Tuesday, hitting $1.31 in trading at closing at $1.28.
Sirius XM had said Friday that it expects to exceed 20 million subscribers by the end of this year. Q2 results were strong and CEO Mel Karmazin was bullish on the company’s growth prospects. The company had long since dealt with any listing problem with Nasdaq for its stock price – it’s stayed above the $1 threshold since very early September and, in fact, moved up sharply.
The most recent focus has been on renewing the company’s most important content contracts. Widely reported rumors this week say Opie & Anthony have signed renewal deals. Much more important are the NFL and Howard Stern, but Karmazin was upbeat on both fronts at an investor conference last month.
RBR-TVBR observation: Happy days are here again. If Sirius XM is riding high on Wall Street, maybe Howard Stern won’t have to take such a big pay cut to stay onboard.