Amazon Outshines Sirius XM with 235,900% Return Since IPO: Forget the Radio Stock and Invest in the E-commerce Giant

Sirius XM has struggled, losing 54% of its capital value in the past 5 years despite being profitable and paying a 4.69% dividend yield. The company faces intense competition from streaming platforms, leading to stagnant sales growth. In contrast, Amazon has seen its share price skyrocket 235,900% since its IPO in 1997 and is expected to register durable growth due to its online shopping dominance and other secular tailwinds.

Sirius XM Holdings Inc. (SIRI) has faced significant challenges in recent years, losing 54% of its capital value over the past five years despite maintaining profitability and a 4.69% dividend yield. The company's struggles can be attributed to intense competition from streaming platforms, leading to stagnant sales growth [2].

In contrast, Amazon.com Inc. (AMZN) has seen its share price skyrocket 235,900% since its IPO in 1997 and is expected to register durable growth due to its online shopping dominance and other secular tailwinds. The primary cause of Amazon's stock underperformance compared to the tech-heavy Nasdaq 100 is slower growth in its cloud-computing business, Amazon Web Services (AWS) [3].

Sirius XM's quarterly earnings report indicated a loss with $0.57 EPS, missing the consensus estimate by $0.22, while revenue was slightly better than expected at $2.14 billion. The company announced a quarterly dividend of $0.27 per share, equating to an annualized dividend yield of 4.6% for investors of record as of August 8th [2].

Institutional investors have been trimming their positions in Sirius XM. Brandywine Global Investment Management LLC reduced its stake by 21.5%, selling 477,416 shares and holding approximately 1,740,601 shares worth $39.2 million as of the latest SEC filing [2]. Despite this, several other institutional investors and hedge funds have bought and sold shares of the company. Kovitz Investment Group Partners LLC purchased a new position worth about $286,000, HighTower Advisors LLC boosted its position by 5.1%, and Nuveen LLC purchased a new position worth about $12,494,000 [2].

The company's market capitalization stands at $7.91 billion, with a PE ratio of -3.48, a price-to-earnings-growth ratio of 0.34, and a beta of 0.92. Sirius XM's 12-month low is $18.69 and its 12-month high is $36.40. The company has a current ratio of 0.41, a quick ratio of 0.41, and a debt-to-equity ratio of 0.89 [2].

Analyst ratings for Sirius XM are mixed. Wells Fargo & Company set an "underweight" rating with a target price of $18.00, while Guggenheim reaffirmed a "buy" rating with a $29.00 price objective. Morgan Stanley raised their price objective to $22.00 with an "underweight" rating, and Barrington Research reaffirmed an "outperform" rating with a $28.00 price objective. Rosenblatt Securities raised their price objective to $23.00 with a "neutral" rating [2].

In conclusion, Sirius XM's struggles can be attributed to intense competition and stagnant sales growth, while Amazon's underperformance is largely due to slower growth in its cloud-computing business. Despite these challenges, both companies continue to operate in competitive and rapidly evolving markets.

References:

[1] Historical Data :: Sirius XM Holdings Inc. (SIRI) - https://investor.siriusxm.com/stock-data/historical-data
[2] Brandywine Global Investment Management LLC Reduces Stock Holdings in Sirius XM Holdings Inc. - https://www.marketbeat.com/instant-alerts/filing-brandywine-global-investment-management-llc-reduces-stock-holdings-in-sirius-xm-holdings-inc-nasdaqsiri-2025-08-15/
[3] Amazon's Stock Falls Behind Nasdaq 100 - https://timesofindia.indiatimes.com/technology/tech-news/the-obsession-that-is-hurting-amazon-as-its-stock-falls-behind-nasdaq/articleshow/123395198.cms