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Yahoo
27-05-2025
- Business
- Yahoo
Should You Forget SiriusXM Holdings? This Stock Has Made Far More Millionaires.
SiriusXM has attracted some deep-pocketed backers, but the stock has continued to be a laggard. Another audio streaming stock, Spotify, is grabbing market share in the industry. As Spotify grows, its operating margin should continue to expand. 10 stocks we like better than Spotify Technology › SiriusXM Holdings (NASDAQ: SIRI) has attracted some big backers over its history, including Liberty Media's John Malone and Berkshire Hathaway's Warren Buffett. In some ways, it's easy to see why. SiriusXM has a monopoly in satellite radio, and its subscription business model could be highly profitable scale. However, one or two elements of a competitive advantage aren't the same thing as a complete one, especially as there are clear weaknesses to SiriusXM's business. First, SiriusXM has struggled to grow its subscriber base for years. Usage of the satellite radio network primarily takes place in the car, and as audio technology has improved, it's become easier to stream music and podcasts through smartphones and in-car infotainment systems. As a result, SiriusXM has continued to underperform. Over the last year, the stock is down 20%, and it's down 59% over the last five years. While SiriusXM may look like a value stock to some -- it offers an attractive dividend yield at 4.9% -- its growth has gone flat. In the first quarter, revenue declined 4% to $2.07 billion as subscribers declined by 303,000 to 33 million. On the bottom line, SiriusXM also continues to shrink. Adjusted earnings before interest, taxes, depreciation, and amortization (EBITDA) fell 3% to $629 million and generally accepted accounting principles (GAAP) earnings per share fell from $0.63 to $0.59. Given what seems like an inexorable decline in SiriusXM as alternative options continue to get better, there's another stock that's worth buying instead, and it's arguably SiriusXM's biggest rival: Spotify (NYSE: SPOT). While SiriusXM has struggled in recent years, Spotify shares have soared, up 500% over the last three years as its subscriber base has grown, its podcast strategy has paid off, and its business model has gained operating leverage. In the first quarter, monthly active users jumped 10% to 678 million with premium subscribers, the vast majority of its business up 12% to 268 million. Revenue from premium subscribers was up 16% to 3.77 billion euros, driving overall revenue up 15% to 4.19 billion euros, but what's been most impressive about Spotify's recent growth is the leverage it's gained. Operating income tripled to 503 million euros. Spotify has become the preeminent global platform for audio streaming as it long ago left Pandora, SiriusXM, and other competitors in the dust, and it now appears to be following a similar path to Netflix as margins expand rapidly as revenue grows. Spotify is also improving its ad product with new partnerships with demand-side platforms to automate ads, and introduced a new feature called Concerts Near You, helping users learn about nearby concerts based on their playlists. At a market cap of $134 billion, Spotify has almost certainly made more millionaires than SiriusXM, which has a market cap of $7.4 billion. However, strong business growth alone doesn't make a stock a buy. You also have to consider valuation, and Spotify does trade at a premium with a trailing price-to-earnings ratio above 100. Its margins are expanding rapidly, and if it can continue to grow its premium subscriber base, its margins should continue to expand as well. Netflix may offer the best comparison for Spotify as their business models are similar. Netflix's operating margin has expanded over the years as its subscriber base has grown, and it's now reached 31.7% in the first quarter. The company is targeting 33.3% in the second quarter, and for the full year, it sees an operating margin of 29%. Spotify's operating margin, meanwhile, rose to 12% in the first quarter, meaning there should still be a lot of upside potential for the operating margin to expand. Considering the company's steady growth, industry leadership, and profit potential, Spotify looks like an attractive buy. It's likely to continue taking market share from SiriusXM. Before you buy stock in Spotify Technology, consider this: The Motley Fool Stock Advisor analyst team just identified what they believe are the for investors to buy now… and Spotify Technology 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 $639,271!* Or when Nvidia made this list on April 15, 2005... if you invested $1,000 at the time of our recommendation, you'd have $804,688!* Now, it's worth noting Stock Advisor's total average return is 957% — a market-crushing outperformance compared to 167% for the S&P 500. Don't miss out on the latest top 10 list, available when you join . See the 10 stocks » *Stock Advisor returns as of May 19, 2025 Jeremy Bowman 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. Should You Forget SiriusXM Holdings? This Stock Has Made Far More Millionaires. was originally published by The Motley Fool Sign in to access your portfolio
Android Authority
23-05-2025
- Health
- Android Authority
WHOOP's new high-end fitness tracker is just straight-up dying all over the place
Kaitlyn Cimino / Android Authority TL;DR WHOOP introduced its 5.0 and MG trackers earlier this month. A concerning number of new WHOOP MG owners have been posting about the trackers failing within hours of first use. This very public failure follows hot on the heels of WHOOP criticism for backing down from earlier upgrade promises. Earlier this month, WHOOP introduced its latest fitness trackers, announcing the WHOOP 5.0 and WHOOP Medical Grade (MG). The company's screen-less solutions offer an alternative to wearables that demand a lot of user attention, so long as you're cool with the subscription-based model they require. While everything sounded fine initially, it didn't take too long for the first sign of trouble to creep up, as existing users started complaining about being charged to upgrade to the new hardware, despite earlier promises of getting it for free. As if that weren't trouble enough, today we're leaning about yet another dark cloud casting itself over the recent launch. Compared to the WHOOP 5.0, the WHOOP MG and its corresponding 'Life' subscription tier offer advanced health features like atrial fibrillation (AFib) detection, blood pressure insights, and a heart screener with electrocardiogram (ECG). Understandably, a lot of the company's users found that MG option particularly appealing, and signed up right away. But it took basically no time at all before reports of problems started piling up. The crew over at Tech Issues Today has been compiling some of these user complaints, and there is absolutely no shortage of them. We hear in multiple Reddit threads, like these from users Kingmasala, SalesRep44, and ivanflo, that their brand-new trackers are just straight-up dying, either right out of the gate or within the first day or so of operation. Some users, like Mountain-Lead, have shared communication they've received from WHOOP where the company says it's proactively sending our replacement hardware, suggesting awareness of a widespread issue. Frustratingly, some seem to be getting the wrong devices, receiving the base WHOOP 5.0 instead of a direct replacement for the pricier WHOOP MG. If you're experiencing issues with your WHOOP tracker, the company offers some troubleshooting steps you can attempt, but you may ultimately need to contact support for a replacement. Just keep your fingers crossed that you get the right one sent to you, we guess. Got a tip? Talk to us! Email our staff at Email our staff at news@ . You can stay anonymous or get credit for the info, it's your choice.
National Post
20-05-2025
- Business
- National Post
Spinnaker Support Announces New Customers as VMware Support Business Gathers Momentum
Article content Article content -Spinnaker's VMware support division continues to grow as organizations seek alternatives to Broadcom's licensing changes- Article content DENVER, Colo. — Spinnaker Support (Spinnaker), trusted by companies worldwide to support their essential Oracle, SAP, and VMware software, today announces it is now providing VMware third-party support for a growing number of new customers including Québec City Jean Lesage International Airport (YQB), telecommunications giant Telefónica Germany and optical retail chain Specsavers. Article content Spinnaker launched its VMware support division in March 2024 in response to Broadcom's acquisition of VMware and the subsequent announcement that VMware would move from perpetual licenses to a subscription model. With Spinnaker's new offering, existing VMware customers can avoid cost increases, maintain security and compliance, and gain operational flexibility – and have access to Spinnaker's team of experienced VMware professionals who deliver 24/7/365 support. Article content YQB is managed by Aéroport de Québec Inc., a private corporation responsible for the airport's management, operation, maintenance, and development since November 1, 2000. Around a dozen carriers offer flights from YQB to destinations in North America, Central America, the Caribbean, Mexico, and Europe, and daily flights to the main hubs in eastern North America. Article content YQB had a renewal due for their support from VMware in March of 2025, with the total costs increasing substantially of what was expected. YQB reviewed its support options to look at an option that aligned with its budget requirement. After a detailed process, YQB engaged Spinnaker for an initial five-year term. Article content David McDougall, CRO, Spinnaker Support, said: 'The responses we have received from new and existing VMware support customers has been quite incredible. We're pleased to welcome our first wave of new customers and based on the conversations we've having currently; we expect more to follow very soon. For many of these organizations, the uncertainty around VMware's shift to a subscription model has left them in limbo, and so our new offering couldn't have come at a better time. We are happy to partner with an organization such as YQB, a major organization that has a positive impact on all of Quebec, for the next five years, and to offer them tailor-made services that meet their challenges and needs.' Article content McDougall continued: 'VMware customers are looking for options. The vast majority that we have spoken to don't have a clear view yet of where they want to go, but in all cases, the option of staying with VMware for the significantly increased fees is simply not sustainable. The challenge many have is that not paying fees means not getting support or security on their existing investment. That's where third-party support providers, like Spinnaker, come in. We provide customers as much time as they need to reflect and choose what they want to do with their virtualization strategy.' Article content Spinnaker Support delivers global, independent third-party software support for Oracle, SAP, and VMware, along with managed services and cloud solutions for Oracle and SAP. Trusted by companies worldwide, including those in highly regulated industries, Spinnaker empowers organizations to take control of their IT strategy. By breaking free from vendor-imposed roadmaps, aligning software management with business objectives, reducing costs, and maximizing ROI, Spinnaker provides customers with the power of choice. With a strategic approach to security, performance, resource allocation, and managed services, Spinnaker Support ensures long-term IT efficiency and success. Article content Article content Article content Article content Contacts Article content Article content Article content
The Verge
09-05-2025
- The Verge
Whoop angers users over reneged free upgrade promises
Whoop just announced its new Whoop 5.0 fitness tracker yesterday, but some existing users are already calling foul. Previously, Whoop said people who had been members for at least six months would get free upgrades to next-generation hardware. Now, the company says that members hoping to upgrade from a Whoop 4.0 to 5.0 will have to pay up. Whoop is a bit different from other fitness trackers in that it runs entirely on a subscription membership model. Most wearable makers that have subscriptions will charge you for the hardware, and then customers have the option of subscribing to get extra data or features. A good example is the Oura Ring, where you buy the ring and then have the option of paying a monthly $6 subscription. Whoop, however, has until now said that you get the hardware for 'free' while paying a heftier annual subscription. Previously, Whoop promised users that whenever new hardware was released, existing members would be able to upgrade free of charge so long as they'd been a member for at least six months. However, that has since been scrubbed from Whoop's site — though it was there as recently as March 28th this year, according to the Internet Archive's Wayback Machine. Screenshot: Whoop, Internet Archive On Whoop's current official 'How to upgrade' site, the company states that existing members have one of two options. They can either extend their membership by another 12 months and receive new Whoop 5.0 hardware 'at no extra cost,' or if they'd rather not extend, they can pay a one-time upgrade fee of either $49 for the regular Whoop 5.0 or $79 for the Whoop 5.0 MG, which includes EKG sensors. An official Reddit thread also notes that people who either joined or extended their membership in the past 30 days are eligible for a free upgrade. Understandably, Whoop fans are none too pleased. The r/Whoop subreddit is full of angry users who are accusing the company of misleading them. 'One of the main reasons I chose a Whoop over an Apple Watch was due to the free hardware upgrades,' writes one Redditor. 'Conveniently my 12 month subscription is up around the same time the Apple Watch is released. The cost isn't the issue, it's them changing what was promised.' 'I'm definitely cancelling mine now, over the Whoop hype. Was excited to see they had a nice update and deflated after I saw they went back on their word about not charging for future hardware,' writes another. The Verge reached out to Whoop for comment about why its changed its hardware upgrade policy, but didn't immediately receive a response. We'll update when we hear back. It's another example of how changes to subscriptions often results in customer backlash. Garmin recently angered its customer base by introducing a paid tier to the Garmin Connect app after years of touting its lack of a paywall. Oura also received hefty backlash when it introduced a subscription with its third-gen smart ring.
