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.

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.