quotes

Friday, July 28, 2006

$231 Million Loss for XM, but investors stay happy...

XM Satellite Radio is experiencing some major losses and lower numbers of subscribers coming in below expectations. The company reported quarterly results yesterday with a loss at $231.7 million on sales of $227.9 million, which actually nearly doubled from last years sales of $125.4 million. Basically, XM almost doubled sales but still lost out and just didn't give it its all... not up to par with its competition. In my mind, XM needs to keep subscribers listening just like its rival, Sirius, who added a new contraversial jockey, Howard Stern, to its private pay radio network and has since lured in customers by the thousands. With all the bad news for XM, shareholders maintained to show their full loyalty: the stock was up 4% during mid-day trading earlier today. I say, it'll take some time for XM to recover, but it has some major work to do. (I put XM in the group of brush up stocks ... Home Depot, Google, Dell, Microsoft, Apple etc.).

No comments:

Post a Comment