NEW YORK ( TheStreet) -- Since Liberty Media (LMCA) announced that it was no longer interested in buying the remaining portions of Sirius XM (SIRI - Get Report) it doesn't already own, Sirius stock has been in a perpetual decline.
Although the stock closed up 1.4% Monday to $3.20, shares are still down 8% year to date and down 23% from their 52-week high. Remarkably, despite the fact that three analysts have issued price targets for Sirius of $4 or more, these shares, which have lost 11% in March, remain under pressure. And if my suspicions are correct, things are about to get worse.
With a full quarter of the year now gone, investors need to be smart. The Street has no choice but pay attention to (among others) Apple (AAPL). Not only has Apple introduced CarPlay, the tech giant has already struck deals with several car manufacturers to control the dashboard.
Apple is going after Sirius' domain. The connected car is seen as the next leg of growth. Yet many Sirius investors insist Apple is no competition to Sirius.
As far as they're concerned, Pandora (P) is "no threat" either, even though Pandora is the market leader in radio listening at close to 7% share. Investors are unable or unwilling to explain how Sirius, which is said to be "a monopoly," doesn't have the sort of pricing leverage that a monopoly should enjoy.
I've made this point recently and it's worth repeating here; to stay alive, Sirius desperately needs another source of revenue beyond the automobile. Apple is getting ready to steal that market away. The stock's recent decline suggests that the Street has become aware of this possibility, and it's only going to get worse.