Audio entertainment company Sirius XM Holdings Inc. (NASDAQ: SIRI) recently announced that it has partnered with a Discovery-owned streaming service, discovery+, to offer customers a wide variety of content from both companies.
Following the news, shares of the company gained 1.3% on Wednesday. The stock, however, pared its gains slightly to close at $6.36 in the extended trading session.
With this new partnership, existing as well as new subscribers to SiriusXM’s Platinum VIP plan will have the opportunity to activate a complimentary 12-month subscription to discovery+.
Additionally, SiriusXM will be offering special promotions that give eligible existing and new subscribers to its Platinum, Music and Entertainment, and Streaming Platinum packages, and eligible existing subscribers who upgrade to one of these packages, a complimentary three-month subscription to discovery+.
The Chief Subscription Revenue Officer of SiriusXM, Richard Beatty, said, “We are excited to offer access to discovery+ with our SiriusXM subscription plans. discovery+ is the streaming home to so many major entertainment personalities and brands that resonate with so many people across the country. It is the perfect complementary streaming video service for our diverse audio entertainment platform.”
Recently, Barclays analyst David Joyce downgraded the stock to Sell from Hold with a price target of $6, which implies downside potential of 6% from current levels.
The Street is cautiously optimistic about the stock and has a Moderate Buy consensus rating based on 3 Buys, 3 Holds and 1 Sell. The average SiriusXM price target of $7.36 implies that the stock has upside potential of 15.4% from current levels.
TipRanks’ Website Traffic Tool, which uses data from SEMrush Holdings (SEMR), the world’s biggest website usage monitoring service, offers insight into SiriusXM’s performance this quarter.
According to the tool, the SiriusXM website recorded a 2.40% monthly rise in global visits in November, compared to the same period last year. Further, year-to-date, website traffic has grown 5.23%, compared to the previous year.