XM Satellite Radio Gains 10% on the Week

XM Satellite Radio (XMSR Quote) continued to ride an updraft in market momentum, as investors cheered higher growth targets and expanded partnerships with automakers.

Shares of the Washington, D.C., pay radio service rose 63 cents, or 3%, to $22.33 in early trading Thursday. For the week, XM shares are up 10%, as Wall Street warms to the high-risk cash-burning growth story.

Despite the fact that the company said Thursday that it lost nearly five times more money than it brought in last quarter, investors were encouraged by the bold business outlook offered by executives on the follow-up earnings conference call. The company said it will beat expectations for 1.2 million subscribers by year end and have more than 2.5 million customers next year.

The executives also said Thursday that the company struck a new deal to have its radios installed in some Lexus cars, giving some analysts such as Bear Stearns' Bob Peck reason to speculate that more deals with Lexus parent Toyota may be in the works. XM also said Nissan's Infinity unit has agreed to offer factory or dealer installation on its cars. ...