Sirius XM Holdings (NasdaqGS:SIRI) Flat After Dropping From FTSE All-World Index

Sirius XM Holdings (NasdaqGS:SIRI) experienced a price movement of 1.8% over the last week. During this period, the company was removed from the FTSE All-World Index, which can influence investor perceptions and trading activity. Meanwhile, broader market trends showed modest gains due to optimism about potential tariff reductions, although the overall market was relatively flat. The tech sector, where Sirius XM Holdings is partly categorized, benefited from a rally led by major technology companies. Despite these broader positive market dynamics, the index exclusion likely had a more direct effect on the company's stock price movement this week.

We've identified 2 warning signs for Sirius XM Holdings (1 can't be ignored) that you should be aware of.

Diversify your portfolio with solid dividend payers offering reliable income streams to weather potential market turbulence.

Over the past year, Sirius XM Holdings saw its total shareholder return, factoring in share price and dividends, decrease by 37.32%. This is a significant underperformance compared to the broader US market, which gained 8.1%, and the US Media industry's decline of 5.6% over the same period. A series of revenue declines contributed to this performance. For instance, Q3 2024 revenue dropped to US$2.17 billion, down from US$2.27 billion the previous year, while the full-year revenue totaled US$8.70 billion, resulting in a net loss of US$2.08 billion, a substantial downturn from the previous year's net income of US$988 million.

Additionally, Sirius XM faced index exclusions, impacting its visibility among index-tracked funds. The company was removed from the NASDAQ-100 in June 2024, followed by departures from the NASDAQ Composite and FTSE All-World Index. In contrast, Sirius XM is attempting to balance its financial strategy, continuing with share buybacks amounting to 801,609 shares, which may support share price stability over time but have not offset the impact of broader market conditions entirely.

Our comprehensive valuation report raises the possibility that Sirius XM Holdings is priced lower than what may be justified by its financials.

This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.

Have feedback on this article? Concerned about the content? Get in touch with us directly. Alternatively, email editorial-team@simplywallst.com