SiriusXM had its best week since December 2023 this week, leading all music stocks in a week when the losers outnumbered the winners two to one. Shares of the company jumped 12.3% to $2.
93 following the company’s decision to conduct a 1-for-10 reverse stock split when it merges with the Liberty Media SiriusXM Group tracking stock later this year. SiriusXM gained 16.4% in the week ended Dec.
15, 2023. The reverse split is meant to boost SiriusXM’s beleaguered share price. After years of steady growth in its satellite radio business, the company has suffered declines in both revenue and satellite subscribers as it attempts to build a competitive streaming service.
The company lost 445,000 self-pay subscribers in 2023 — a 1% decline — and experienced a 1.4% drop in the first quarter of 2024. The revamped streaming app launched in December at $9.
99 per month, about half the average revenue per user generated from satellite radio subscriptions in 2023. SiriusXM was the only music stock to post a double-digit gain this week and one of only six stocks in the 20-company Billboard Global Music Index to see growth. With 13 stocks declining and one — French music company Believe — unchanged, the index fell 0.
3% to 1,814.88. On average, live music stocks fared the best with an average gain of 0.
6%. Other segments posted declines: streaming stocks fell 3.7%, radio stocks dropped 2.
9%, and record labels and publishers dipped 1.3%. Live Nation rose 4.
7% to $92.96, its highest cl.
