What Happened:

Shares of satellite radio and media company Sirius XM (NASDAQ:SIRI) fell 6% in the afternoon session after the company reported first quarter result: Its core subscribers churned and its full-year revenue guidance fell short of Wall Street's estimate. On the other hand, Sirius XM slightly topped analysts' revenue expectations during the quarter, thanks to better-than-expected advertising revenue. Its full-year EBITDA and free cash flow guidance were in line. Overall, this was a mixed quarter for Sirius XM.

The stock market overreacts to news, and big price drops can present good opportunities to buy high-quality stocks. Is now the time to buy Sirius XM? Access our full analysis report here, it's free.

What is the market telling us:

Sirius XM's shares are not very volatile than the market average and over the last year have had only 22 moves greater than 5%. In context of that, today's move is indicating the market considers this news meaningful but not something that would fundamentally change its perception of the business.

Sirius XM is down 45.7% since the beginning of the year, and at $2.98 per share it is trading 61.8% below its 52-week high of $7.81 from July 2023. Investors who bought $1,000 worth of Sirius XM's shares 5 years ago would now be looking at an investment worth $512.91.

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