Leader in automotive voice technology Cerence (CRNC) has partnered with a subscription audio entertainment company Sirius XM (SIRI) to provide car audio voice commands for the service. CRNC action rose on the news.
Under the deal, announced Thursday, drivers will be able to use simple and intuitive voice commands to access programming in vehicles equipped with Sirius XM radios. For example, they can say “Play ’80s on 8” to tune to that music channel. Sirius XM offers hundreds of channels of curated, ad-free music, as well as sports, news, entertainment and comedy.
The new functionality will be provided to cars equipped with existing auto assistants powered by Cerence with live update capabilities. And an integrated offering from Cerence and Sirius XM will be available in North America to automakers for models starting production next year.
On the stock exchange today, CRNC stock rose 0.7% to 116.13. But Sirius XM stock fell 2.3% to 6.69.
Adding voice commands to Sirius XM
“Sirius XM has a broad reach as a leading provider of in-car content, delivering new and exciting programming to its subscribers,” Cerence CEO Sanjay Dhawan said in a statement. Press release. “As we extend the capabilities of the Mobility Assistant with more streamlined access to Sirius XM content, we are providing drivers with a rich and dynamic experience that makes their travel safer, more productive and more enjoyable. “
For drivers using Sirius XM for the first time, Cerence will provide a voice and conversational integration experience. It will inform them of the main features, functions and information about Sirius XM and their trial or subscription.
For existing Sirius XM users, the Cerence-powered automotive assistant will use artificial intelligence to constantly know their preferences. Drivers who constantly tune into Sirius XM’s’ 80s on 8s, for example, will be directed to new content they might enjoy.
CRNC Stock on IBD’s flagship watchlist
The CRNC share is on the IBD 50 List the best performing growth stocks.
According to IBD MarketSmith charts, CRNC stock formed a cup base with a buy point of 139.10. This buying point is 10 cents higher than its all-time high of 139, reached on February 16.
Last week, Baird analyst Luke Junk launched a Cerence cover with an outperformance rating. He set a target price for the CRNC share of 122.
“We see CRNC as an attractive growth holding, rooted in the industry-leading AI voice platform for mobility / transportation,” Junk said in a note to clients.
Follow Patrick Seitz on Twitter on @IBD_PSeitz for more articles on consumer technology, software, and semiconductor stocks.
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