USA Today Expert Says Don’t Invest In Satellite Radio

It is no secret that XM and SIRIUS stockholders are getting killed. This year alone, the former is down 53% while the latter is down 37%. But why is this?

Matt Krantz at USA Today considers satellite radio to be a perfect example of “individual investors get[ting] overly enthusiastic about unproven, unprofitable small companies,” just like in the dot-com boom (and subsequent bust). Both companies have yet to register a profit, yet hype (both postitive and negative) has generated a ton of investing movement, which has resulted in enormous stock price fluxuations. This makes a situation fit only for gamblers with money to burn.

Well, no one said we had to buy stock in the companies to enjoy their services :)

Thanks to Satellite Standard for the link.

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