In a rollercoaster trading session, shares of Sirius XM Holdings (NASDAQ:SIRI) experienced a tumultuous ride after announcing the completion of its merger with Liberty Media's Sirius XM tracking stock. The stock initially saw a sharp drop of 8.5% in the morning but quickly recovered, surging by 12% to end the day in positive territory.

The newly merged company will continue to operate under the Sirius XM brand, with trading set to commence following a highly anticipated reverse stock split. Sirius XM emphasized its "simplified capital structure" and provided an encouraging financial update. The company confirmed its earlier full-year 2024 revenue and adjusted EBITDA outlook, while also projecting approximately $1 billion in free cash flow for the year.

One optimistic voice in the market is Seaport analyst David Joyce, who remains confident in the growth trajectory of the company. Joyce believes that 2024 is the year where Sirius XM will hit its lowest point, with substantial growth expected to resume in 2025 as spending on satellite capital expenditures and technology moderates. He also anticipates improved sentiment and valuation due to the newly streamlined capital structure, which should enhance trading liquidity and simplify the story for investors.

Joyce appreciates the stable business model of Sirius XM, which boasts a loyal base of satellite radio subscribers and a burgeoning podcasting and advertising segment. While acknowledging a manageable decline in the Pandora business, Joyce highlights Sirius XM's efforts to attract a younger audience through its expanded streaming service. The company has invested in content creators like Alex Cooper to drive growth and is actively working to unify Sirius and Pandora onto a single platform, enabling bundled and cross-platform advertising deals.

It is important to note that the opinions expressed in this article are solely those of the featured analyst, and readers are encouraged to conduct their own analysis before making any investment decisions.

Overall, the completion of the merger and the positive financial update from Sirius XM Holdings have instilled renewed confidence in the company's future prospects, prompting a strong rebound in its share price.