Just a couple of weeks ago, there was a great outcry around satellite and streaming music giant SiriusXM (SIRI) that one of its biggest names, Howard Stern, was about to depart the platform. But new reports suggest that this might have been a tempest in a teapot all along, as Stern has a new deal with Sirius. The news proved welcome enough to investors, who sent shares up fractionally in Tuesday afternoon’s trading.
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The new reports say that Stern has signed a new contract with Sirius already, which would “…secure his space with Sirius XM even if his current contract expires.” Moreover, another source noted that “…everything is a done deal in this regard, and all previous reports of him exiting the company were pure fallacy.” Ultimately, Stern himself plans to reveal his status with Sirius XM in just a couple of weeks, when he will do so on social media September 2.
While Stern’s popularity has been on the decline in recent years, reports noted, and the nature of his content has changed significantly in that time, apparently Stern will manage to stick around thanks to “…his wealth of experience….”
Apparently That is a Thing
Then, in a twist that might send shockwaves throughout just about every business out there, Sirius XM is being sued. But this time, by an “unsuccessful job applicant,” Arshon Harper, who alleged that the company’s hiring tool, which is artificial intelligence-driven, “…discriminated against him based on his race.” Thus, a suit was filed over “AI hiring bias,” which apparently is now a thing.
The lawsuit, Harper v. Sirius XM Radio, LLC, alleges that the system turned to “historical hiring data” to make its decisions, data that “…perpetuated past biases…” That in turn resulted in Harper’s application being downgraded despite clear qualification required to do the job. The system, the iCIMS Applicant Tracking System, analyzes application materials and assigns points accordingly using “…data points that proxy for race…” like home ZIP code and employment history.
Is SiriusXM Stock a Good Buy?
Turning to Wall Street, analysts have a Hold consensus rating on SIRI stock based on three Buys, three Holds, and five Sells assigned in the past three months, as indicated by the graphic below. After a 29.69% loss in its share price over the past year, the average SIRI price target of $22.85 per share implies 0.52% downside risk.
