Why Sirius XM Holdings Inc. (SIRI) Went Down on Tuesday

We recently compiled a list of the 10 Stocks Battered by Bearish Outlooks. In this article, we are going to take a look at where Sirius XM Holdings Inc. (NASDAQ:SIRI) stands against the other stocks.

Ten firms ended Tuesday suffering a sell-off, as investor sentiment continues to be dampened by macroeconomic uncertainties and bearish outlooks from analysts and their management.

The stocks–three of which belong to the travel and tourism industry–registered losses following lower outlook guidance, taking into account the potential effects of President Donald Trump’s trade war with other countries.

The pessimistic sentiment mirrored the broader market decline, with the Dow Jones slashing another 1.14 percent during the day, the S&P dropping 0.76 percent, and the Nasdaq dipping 0.18 percent.

To come up with the list, we considered only the stocks with at least $2 billion in market capitalization and $5 million in trading volume.

A close-up of a hand, counting the money from the subscription fees of the Entertainment Communication Services company.

Sirius XM Holdings Inc. (NASDAQ:SIRI)

Sirius XM Holdings Inc. (NASDAQ:SIRI) declined by 6.93 percent on Tuesday to close at $22.70 apiece as expectations of softer advertising spending have weighed down on the company’s shares.

At a Deutsche Bank conference on Tuesday, SIRI Chief Finance Officer Tom Barry raised concerns on the lower advertising spending, saying that Sirius XM Holdings Inc. (NASDAQ:SIRI) has been experiencing a recent pullback in advertising from consumer packaged goods and retail industries over the past few months.

Barry also feared that the lower ad activities could dribble down to other sectors amid the ongoing trade war between the United States and its trading partners, which could further impact profit margins.

Sirius XM Holdings Inc. (NASDAQ:SIRI), an American broadcasting company, derives a huge portion of its revenues from advertising. However, the past two years saw a lower number of subscribers for the company due to inflationary pressures.

Overall SIRI ranks 7th on our list of Tuesday’s worst performers. While we acknowledge the potential of SIRI as an investment, our conviction lies in the belief that some AI stocks hold greater promise for delivering higher returns and doing so within a shorter time frame. If you are looking for an AI stock that is more promising than SIRI but trades at less than 5 times its earnings, check out our report about the cheapest AI stock.

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Disclosure: None. This article is originally published at Insider Monkey.