It's all great focusing on the arbitrage of tracking stock. But how good is the business itself?

Barron's take on the investment:

So far this year, SiriusXM is the biggest loser in the Nasdaq 100 index with a decline of 34%.

What happened? Sirius XM, which traded around $5 a share at the time of the December deal announcement, looked richly valued at that time, trading for about 10 times estimated 2024 earnings before interest taxes, depreciation and amortization (Ebitda).

That’s a premium to cable and broadband leaders Comcast and Charter Communications that trade for under seven times 2024 Ebitda (based on their enterprise values). Sirius XM has become a no-growth company with flat revenue and a slight decline in satellite radio subscribers last year—the total is about 34 million.

Car buyers—particularly younger ones—seem increasingly reluctant to pay $18.99 a month for a Sirius music and entertainment subscription when they can listen to music from their phones. Sirius XM’s satellite radio subscriber base skews older with Berkshire CEO Warren Buffett, 93, a fan of the service and its Siriusly Sinatra station that plays standards.

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