Investors may view reverse stock splits negatively, as they often signal fewer shares and a short-term problem, but it can signal optimism in the longer term.

While Sirius is not a horrible stock, its next five years look likely to be as lackluster as the previous five years. While the satellite radio business remains a stable cash cow, there isn't much opportunity for growth, especially with rising competition from alternatives like Apple Car Play.

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The potential that Sirius XM finally gets its strategy right highlights the attraction of the stock with a significant opportunity to monetize next-generation audio formats. Let's discuss what investors should do with Sirius XM stock now.