Lowered guidance purely driven by dollar weakness, Pandora CEO says
Alexander Lacik, CEO of Pandora, discusses first-quarter results, revised 2025 guidance and explains how U.S. tariffs might impact the business.
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Sirius XM Stock Looks Cheap -- or Does It?
Key Points Sirius XM generates strong free cash flow. Subscriber growth has stalled, and digital expansion through Pandora remains a work in progress. The stock's long-term returns hinge on whether Sirius can find a growth catalyst. 10 stocks we like better than Sirius XM › Sirius XM (NASDAQ: SIRI) is one of the most polarizing stocks in the media space. On paper, it appears to be a classic value play: a sticky subscription business, substantial free cash flow, generous buybacks, and a solid dividend. Yet the market isn't buying it -- shares are down 34% in the last 12 months (as of writing), and sentiment remains firmly negative. So what's going on? Is Sirius XM genuinely undervalued -- or is it cheap for a reason? Let's break it down. The bull case: A cash cow with recurring revenue Sirius XM's biggest strength is its predictable revenue stream. In 2024, 76% of its $8.7 billion in revenue comes from subscriptions, providing a predictable cash flow. That year, free cash flow was $1 billion. That kind of recurring, high-margin revenue is increasingly hard to find in a media landscape dominated by ad-dependent business models. While not the sexiest, Sirius XM's core satellite radio business remains sticky among car owners, who often auto-subscribe after buying a new or used vehicle. This captive audience has enabled Sirius to maintain churn rates under 2% over the last five years, reflecting the strength of its business model. Meanwhile, Sirius has returned nearly $7.5 billion to shareholders over the past seven years through share buybacks, reducing a substantial portion of the share float. Moreover, it has consistently paid dividends over the last decade, further rewarding shareholders. Its investor-friendly capital allocation strategy may have explained Berkshire Hathaway's massive stake in the company. So, for value investors, the setup is appealing: a high-cash-flow business, ongoing share buybacks, and a management team committed to paying dividends. The bear case: Growth is negative Despite all the positive factors mentioned, Sirius XM has not garnered much investor support. For perspective, the stock trades recently at a price-to-free-cash-flow (P/FCF) ratio of 7.3 times, which was down around 50% over the last five years. So what's the problem? The primary reason is that the company has struggled to grow in recent years. In fact, revenue declined in the last two years, down from $9 billion to $8.7 billion. While the magnitude of the decline has been modest, it highlights the challenge the media company has in transitioning its business model. For instance, paid subscribers peaked at 34.9 million in 2019 and have since slowly declined to 33.2 million as of 2024. While the broader audio space is booming (just look at Spotify's podcast pivot or YouTube's recent success), Sirius has yet to find its niche, even after acquiring Pandora. So far, the streaming and podcast business still hasn't lived up to expectations. Its revenue has remained roughly flat at around $2 billion over the last four years, while monthly active users have been declining during this period. In other words, Sirius XM is stuck between two worlds: a legacy satellite business with limited growth potential, and a digital platform that's struggling to compete. More importantly, without a compelling growth story, even a "cheap" multiple can be misleading. Valuations tend to compress -- and stay compressed -- when the market sees a declining business. Is the stock a bargain or not? It depends. If investors believe Sirius XM can stabilize its subscriber base, extract more value from Pandora, and maintain strong free cash flow, then the stock could offer solid returns through dividends and buybacks alone. Furthermore, the company is experimenting with new ways of monetization, which include its low-priced ad-supported subscription service, and is also working hard to turn around its podcast business by steering it beyond its legacy car user cohort. If these initiatives become just mildly successful, then today's valuation may look like a gift. On the other hand, there's a possibility that the current decline in revenue and subscriber base proves to be structural, and that the company fails to transition itself to a new sustainable business model. In this context, the stock's low valuation isn't a bargain, but rather a reflection of the market pricing in a structural decline. Worse, these failed "value stocks" often remain cheap or become cheaper. What does it mean for investors? Sirius XM shares appears cheap -- but only if the company can halt its revenue decline and sustain its cash flow. Without growth, it's hard to see meaningful upside. Investors seeking a stable, cash-generating business may find value in this opportunity. Just don't expect this stock to race ahead anytime soon. Should you invest $1,000 in Sirius XM right now? Before you buy stock in Sirius XM, consider this: The Motley Fool Stock Advisor analyst team just identified what they believe are the for investors to buy now… and Sirius XM wasn't one of them. The 10 stocks that made the cut could produce monster returns in the coming years. Consider when Netflix made this list on December 17, 2004... if you invested $1,000 at the time of our recommendation, you'd have $653,427!* Or when Nvidia made this list on April 15, 2005... if you invested $1,000 at the time of our recommendation, you'd have $1,119,863!* Now, it's worth noting Stock Advisor's total average return is 1,060% — a market-crushing outperformance compared to 182% for the S&P 500. Don't miss out on the latest top 10 list, available when you join Stock Advisor. See the 10 stocks » *Stock Advisor returns as of August 4, 2025 Lawrence Nga has no position in any of the stocks mentioned. The Motley Fool has positions in and recommends Berkshire Hathaway and Spotify Technology. The Motley Fool has a disclosure policy. Sirius XM Stock Looks Cheap -- or Does It? was originally published by The Motley Fool
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7 hours ago
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Postman, engineer, cleaner: Are hackers sneaking into your office?
When you think of a cyber attack, most of us imagine a classic hacker—a man in a hoodie, hunched alone over his computer, accessing a company's network remotely. But that's not always the case. Despite office security desks, it's easy to disguise yourself and simply walk in, a cyber security trainer told Euronews. 'Many people, when they see a high vis top, they think: 'Oh this person's an engineer' or something like that, and then just let them walk through.' While we're all aware of cyber attacks and the increasing threat they pose to businesses—particularly in light of recent attacks on Pandora, Chanel, Adidas and Victoria's Secret—most of us significantly underestimate the physical ways our defences can be breached. Global cyber security spending is projected to reach $213 billion (€183bn) in 2025, up from $193 billion (€166bn) in 2024, according to the latest data from Gartner, Inc. Despite this, according to Cisco's 2025 cybersecurity readiness index, only 4% of organisations globally are fully prepared for modern threats. According to security experts Sentinel Intelligence, physical security is a critical blindspot in our defences, and the consequences of ignoring this attack vector can be disastrous. The physical frontline of digital security The overall cyber threat in Europe is estimated to cost €10 trillion in 2025 and it's only set to grow, according to a recent interview with software company Splunk. In terms of physical cyber attacks, the threat is real and dangerous, as shown by the World Security Report 2023. Research found that large global companies, meaning those with combined revenues of $20 trillion, reported $1tn (€860bn) in lost revenue during 2022, directly caused by physical security incidents. That could mean a hacker gaining access to your office building in order to target your digital infrastructure. Related Defence sector outpaces overall job market in Europe amid rising security priorities Businesses set to fail if cyber resilience not most important thing says Splunk strategy head Penetration testing is a common service, commissioned by business leaders to test their internal defences. If you work in a big office, it has probably happened around you, without you even knowing. Euronews Business spoke to Daniel Dilks, director of operations at Sentinel Intelligence, to learn exactly what some of their recent tests have entailed. Case 1: Tailgating & access breach at a corporate headquarters 'Sentinel operatives dressed in business attire entered the building by tailgating staff during the morning rush, carrying fake ID badges and a laptop bag to blend in. Once inside, they located an unsecured meeting room, connected to the guest Wi-Fi, and left a rogue device (a network implant),' Dilks told Euronews. Case 2: Out-of-hours lock picking & data exposure 'During off-hours, testers gained access by picking a standard euro-cylinder lock on the side door. Once inside, they accessed an unlocked filing cabinet containing printed client contracts and passwords. No alarms were triggered,' Dilks explained. And for a criminal, once they've figured out how to enter a building, they can potentially do it on numerous occasions, each time gathering more information or causing more damage. Case 3: Social engineering & credential theft simulation 'An operative posed as a contractor for the building's heating and ventilation system. After entering with a high-vis vest and fake work order, the individual was escorted into a server room by staff who believed the visit was scheduled. While inside, they photographed exposed credentials and connected a USB 'dropbox' to a workstation,' he added, explaining that it's common for penetration testers to leave USB pens scattered around offices. Many workers, in the hope of being helpful, will plug them into their computers to see who it belongs to. In a real world attack scenario, this could introduce malware directly into your company network. In all of these examples, poor physical security measures, reluctance to challenge or verify unknown people, and making basic mistakes like writing passwords on post-it notes could all lead to serious consequences. Related How long could it take a hacker to crack one of your passwords in 2025? What are the consequences of a cyber attack? Though it's tricky to break down the exact cost of a security breach, attacks have short- and long-term consequences for a business. There are the initial direct costs which could be linked to physical damage. 'Somebody manages to break in, and they sabotage your system, they basically smash it up, right? So there's a direct cost there to the actual equipment,' the cyber security expert explained. 'But if damage to the equipment means you're not able to function for several days, that's loss of business. And sometimes when a customer can't reach you several times, they may decide to go elsewhere.' The expert explained that consequences can quickly intensify if data is wiped and backups don't work, adding that organisations can crumble without their systems. Indirect costs could also have enduring ramifications. 'Let's say someone steals your data and then there's intellectual property or confidential documents and then they get leaked. What's the cost to the organisation? There's a reputational cost there, they may lose contracts when the customers lose trust in them.' Companies can also be fined for these sorts of data breaches. Related Defence sector outpaces overall job market in Europe amid rising security priorities Surprising attack vectors The cyber security expert shared some particularly surprising ways that criminals have hacked into company systems in recent years. 'There was this case where in a casino in the US, attackers gained access to the network, not through going directly through the main part of the network, but they compromised a water-regulating device in an aquarium that was connected to the system.' And whilst we might not all have aquariums in our homes and offices, smart devices can be vulnerable too. 'When smart kettles first came out, the security community was very interested,' the expert explained. 'If you go to a cyber security conference, sometimes you'll see a demo of them hacking a kettle and then extracting the WiFi password, and then using the WiFi passport to then go into a network, and many things can snowball from there' If you're running a company, it's worth identifying all the possible ways you could be attacked. Even so, the expert emphasised that while we need to exercise caution, it doesn't mean we need to be rude or unkind to strangers in the workplace out of fear. 'Just be wary and be aware. We don't need to change our nature and be unkind to everyone, but we just need to be aware that there are some malicious people out there.' Sign in to access your portfolio
Yahoo
7 hours ago
- Yahoo
Postman, engineer, cleaner: Are hackers sneaking into your office?
When you think of a cyber attack, most of us imagine a classic hacker—a man in a hoodie, hunched alone over his computer, accessing a company's network remotely. But that's not always the case. Despite office security desks, it's easy to disguise yourself and simply walk in, a cyber security trainer told Euronews. 'Many people, when they see a high vis top, they think: 'Oh this person's an engineer' or something like that, and then just let them walk through.' While we're all aware of cyber attacks and the increasing threat they pose to businesses—particularly in light of recent attacks on Pandora, Chanel, Adidas and Victoria's Secret—most of us significantly underestimate the physical ways our defences can be breached. Global cyber security spending is projected to reach $213 billion (€183bn) in 2025, up from $193 billion (€166bn) in 2024, according to the latest data from Gartner, Inc. Despite this, according to Cisco's 2025 cybersecurity readiness index, only 4% of organisations globally are fully prepared for modern threats. According to security experts Sentinel Intelligence, physical security is a critical blindspot in our defences, and the consequences of ignoring this attack vector can be disastrous. The physical frontline of digital security The overall cyber threat in Europe is estimated to cost €10 trillion in 2025 and it's only set to grow, according to a recent interview with software company Splunk. In terms of physical cyber attacks, the threat is real and dangerous, as shown by the World Security Report 2023. Research found that large global companies, meaning those with combined revenues of $20 trillion, reported $1tn (€860bn) in lost revenue during 2022, directly caused by physical security incidents. That could mean a hacker gaining access to your office building in order to target your digital infrastructure. Related Defence sector outpaces overall job market in Europe amid rising security priorities Businesses set to fail if cyber resilience not most important thing says Splunk strategy head Penetration testing is a common service, commissioned by business leaders to test their internal defences. If you work in a big office, it has probably happened around you, without you even knowing. Euronews Business spoke to Daniel Dilks, director of operations at Sentinel Intelligence, to learn exactly what some of their recent tests have entailed. Case 1: Tailgating & access breach at a corporate headquarters 'Sentinel operatives dressed in business attire entered the building by tailgating staff during the morning rush, carrying fake ID badges and a laptop bag to blend in. Once inside, they located an unsecured meeting room, connected to the guest Wi-Fi, and left a rogue device (a network implant),' Dilks told Euronews. Case 2: Out-of-hours lock picking & data exposure 'During off-hours, testers gained access by picking a standard euro-cylinder lock on the side door. Once inside, they accessed an unlocked filing cabinet containing printed client contracts and passwords. No alarms were triggered,' Dilks explained. And for a criminal, once they've figured out how to enter a building, they can potentially do it on numerous occasions, each time gathering more information or causing more damage. Case 3: Social engineering & credential theft simulation 'An operative posed as a contractor for the building's heating and ventilation system. After entering with a high-vis vest and fake work order, the individual was escorted into a server room by staff who believed the visit was scheduled. While inside, they photographed exposed credentials and connected a USB 'dropbox' to a workstation,' he added, explaining that it's common for penetration testers to leave USB pens scattered around offices. Many workers, in the hope of being helpful, will plug them into their computers to see who it belongs to. In a real world attack scenario, this could introduce malware directly into your company network. In all of these examples, poor physical security measures, reluctance to challenge or verify unknown people, and making basic mistakes like writing passwords on post-it notes could all lead to serious consequences. Related How long could it take a hacker to crack one of your passwords in 2025? What are the consequences of a cyber attack? Though it's tricky to break down the exact cost of a security breach, attacks have short- and long-term consequences for a business. There are the initial direct costs which could be linked to physical damage. 'Somebody manages to break in, and they sabotage your system, they basically smash it up, right? So there's a direct cost there to the actual equipment,' the cyber security expert explained. 'But if damage to the equipment means you're not able to function for several days, that's loss of business. And sometimes when a customer can't reach you several times, they may decide to go elsewhere.' The expert explained that consequences can quickly intensify if data is wiped and backups don't work, adding that organisations can crumble without their systems. Indirect costs could also have enduring ramifications. 'Let's say someone steals your data and then there's intellectual property or confidential documents and then they get leaked. What's the cost to the organisation? There's a reputational cost there, they may lose contracts when the customers lose trust in them.' Companies can also be fined for these sorts of data breaches. Related Defence sector outpaces overall job market in Europe amid rising security priorities Surprising attack vectors The cyber security expert shared some particularly surprising ways that criminals have hacked into company systems in recent years. 'There was this case where in a casino in the US, attackers gained access to the network, not through going directly through the main part of the network, but they compromised a water-regulating device in an aquarium that was connected to the system.' And whilst we might not all have aquariums in our homes and offices, smart devices can be vulnerable too. 'When smart kettles first came out, the security community was very interested,' the expert explained. 'If you go to a cyber security conference, sometimes you'll see a demo of them hacking a kettle and then extracting the WiFi password, and then using the WiFi passport to then go into a network, and many things can snowball from there' If you're running a company, it's worth identifying all the possible ways you could be attacked. Even so, the expert emphasised that while we need to exercise caution, it doesn't mean we need to be rude or unkind to strangers in the workplace out of fear. 'Just be wary and be aware. We don't need to change our nature and be unkind to everyone, but we just need to be aware that there are some malicious people out there.' Error in retrieving data Sign in to access your portfolio Error in retrieving data Error in retrieving data Error in retrieving data Error in retrieving data
