Sirius XM Holdings (NASDAQ:SIRI) brought good news for its investors by announcing that the results of the fourth quarter were better than expected. Sirius XM Holdings (NASDAQ:SIRI) also shed some light on the future plans and on the financial strategies it has constructed for the future. Investors who’ve been heavily investing in Sirius XM Holdings (NASDAQ:SIRI) will be pleased to know that Sirius XM Holdings (NASDAQ:SIRI) will be able to compensate them with share buybacks because the company mentioned that it still has finances left which are completely dedicated to share buyback.
Sirius XM Holdings (NASDAQ:SIRI) talked about the connected car deeming it a lurking threat and a prospective opportunity at the same time. Sirius XM Holdings (NASDAQ:SIRI) considers the free apps on the smartphone markets to be its main competition, even though in the past Sirius XM Holdings (NASDAQ:`SIRI) has been advocating such apps. Sirius XM Holdings (NASDAQ:SIRI) still holds a leverage point over these apps because it can grow a lot in the terrestrial radio region.
Sirius XM Holdings (NASDAQ:SIRI) lost 40 percent of its premium subscribers but that didn’t worry the company because it made it all up with a great holiday quarter. The holiday quarter has been turning out quite lucrative for the company since 2007. The selling of new cars, amongst other things is keeping Sirius XM Holdings (NASDAQ:SIRI) strong on the market.
Sirius XM Holdings (NASDAQ:SIRI) is a firm believer in investing in its own stock. The company spent 2.5 billion on 739 million shares of its own. The company realizes that it has to keep investors happy if it wants to keep rolling smoothly on the stock market. Also, buyback program is a sign of a company’s financial strength. It sends out a message to the investors out there that the company is strong enough to compensate you even if a loss occurs.
Sirius XM Holdings (NASDAQ:SIRI) is expanding its spectrum by going for artists and celebrities that can entertain through bilingual content. The reason for that is because the company believes that sticking to a celebrity of a single language or ethnicity narrows down the listeners. Sirius XM Holdings (NASDAQ:SIRI) isn’t looking for striking deals with labels or artists because that would give birth to certain technicalities and complications. The company is better off acting as a free agent because that ensures more opportunities than contracts with particular labels or musicians.
So what message did it send to its investors? The company assured its investors that it has enough finances to cater to all its investors and if they decide to invest their money in the company, it will be safe and they will certainly earn a profit, even if the company plunges into a loss.
It’s really considerate of Sirius XM Holdings (NASDAQ:SIRI) to be giving such an iron clad guarantee to its investors. But what the company needs now is to allay the doubts against its financial strategies; introduce some stability into the company so that investors feel safer. Share buyback program is all going good but investors need more than that.
