The news that UBS thinks XM Radio (XMSR) will end 2007 with only 9.1 million subscribers must be depressing for owners of the stock and its rival Sirius (SIRI). That would put it growth rate at less than 20%
An addition of only 1.5 million net new subscribers in 2007 would mark a significant slowing in satellite growth rate for the industry leader. Even if Sirius adds two million subscribers, that would put its total at only 8 million.
One thing is becoming clear. XM and Sirius are not growth stocks any longer.
Douglas A. McIntyre can be reached at [email protected]. He does not own securities in companies that he writes about.
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