Results Are a Sirius Disappointment for Satellite Radio Fans

Bulls say Sirius' massive losses and early stumbles, including a recapitalization last spring that increased shares outstanding more than tenfold, will be forgiven if the company can show it is gaining subscriber growth momentum. Fans love the potential mass-market appeal of subscription radio service for cars and homes, and that concept has helped create a strong following for the stocks of the two satellite radio companies.

Both companies have teamed up with major automakers and electronics retailers in the past year, potentially opening up a sales opportunity beyond its cult following.

Wait till next year, says one hedge fund manager who is long Sirius. "The market wants them to grow a big business, and XM has proven this can be done."

But with quarterly losses outpacing sales by some 25 to 1, next year seems like a long way off.