10 Stocks That Will Bounce Back According To Hedge Funds

3. Sirius XM Holdings Inc. (NASDAQ:SIRI)

Year-To-Date Loss: 56.08%

Number of Hedge Fund Investors In Q3 2024: 49

Sirius XM Holdings Inc. (NASDAQ:SIRI) is an American entertainment company that streams audio content through software applications and satellites. The firm has had a tumultuous year so far as it has struggled to maintain its paid user base primarily due to shifts in the car market. Sirius XM Holdings Inc. (NASDAQ:SIRI) depends to a large extent on vehicle subscriptions, and according to the firm, higher new car sales have pushed a large chunk of its users into unpaid trial services. Its subscriber churn rate during Q1, Q2, and Q3 was 1.7%, 1.5%, and 1.6% for its self-pay users. The drops have caused Sirius XM Holdings Inc. (NASDAQ:SIRI) to reduce its full-year revenue guidance to $8.68 billion from an earlier $8.75 billion. Over the long term, the firm’s hypothesis depends on its 2027 target of $1.5 billion through $200 million in cost savings.

Weitz Investment mentioned Sirius XM Holdings Inc. (NASDAQ:SIRI) in its Q3 2024 investor letter. Here is what the fund said:

“This quarter, Liberty SiriusXM successfully completed its merger with SiriusXM, simplifying a complicated ownership structure by transforming our holdings of Liberty’s tracking stock into a direct interest in the satellite radio business. Unfortunately, the merger comes as investors are concerned with recent, negative subscriber trends and diminished cash flow that have pressured shares of both entities this year. As a result, the new Sirius XM Holdings Inc. (NASDAQ:SIRI) is on detractors list for the quarter. At current prices, we believe investors are overly pessimistic about SiriusXM’s future cash flows, and modestly added to our position. There were no new businesses added to the portfolio this quarter, nor any exits (our shares of Liberty SiriusXM were converted into shares of the new SiriusXM Holdings in the merger).”