Core Viewpoint - Sirius XM Holdings is currently trading near an 11-year low, having lost more than half its value in the previous year, but there are potential opportunities for recovery in the future [2][4]. Group 1: Company Performance - Sirius XM's subscriber base decreased to 33.2 million by the end of September, representing a 2% decline year-over-year [3]. - The company is experiencing a decline in revenue for the second consecutive year, with a significant reduction in its 2024 and 2025 revenue targets, dropping from an initial forecast of $1.2 billion in annual free cash flow to $1 billion [3][12]. - The stock has seen a 58% decline during a generally rising market, raising questions about the fairness of this drop given the company's historical profitability [4]. Group 2: Investment Considerations - The stock is currently trading at a low valuation of 7 times forward earnings, which may present a buying opportunity if the business shows signs of recovery [12]. - Berkshire Hathaway, led by Warren Buffett, has increased its stake in Sirius XM, owning over a third of the outstanding shares, which may attract other value investors [6][8][13]. - Sirius XM has a history of using its free cash flow for share repurchases, reducing its split-adjusted share count by 42% since 2012, which could enhance the stock's potential for significant price appreciation [13]. Group 3: Market Dynamics - The potential for recovery may be influenced by external factors such as falling gas prices and a rebound in the auto market, which could increase the number of new vehicle sales and, consequently, Sirius XM subscriptions [11]. - The company needs bullish catalysts to improve subscriber growth, revenue, and profitability, particularly as more employees return to in-office work [11].

Has Warren Buffett given up on the stock market? Not entirely. Sure, the legendary investor has been a net seller of stocks for eight consecutive quarters and could extend that streak. However, Buffett is still buying at least a few stocks for Berkshire Hathaway's portfolio.Buffett bought 10 stocks in all of 2024 (excluding buybacks of Berkshire's shares). Which is the best of the bunch for 2025?Buffett's top 10 for last yearSeveral of the stocks Buffett bought last year were existing positions for Berkshir ...

Shares of Sirius XM Holdings (SIRI 0.36%) are down about 59% in the past year and currently trading at a 52-week low. Underwhelming results from the satellite radio giant have raised concerns about whether the company can manage to turn the dial to the correct growth station.Nevertheless, stock market volatility can sometimes present investors with a compelling opportunity to pick up the pieces of a solid company at a deep discount ahead of a potential turnaround. Is that the case with Sirius XM right now?H ...

Core Viewpoint - Sirius XM Holdings stock has declined approximately 60% in 2024, attributed to challenges in the automotive industry and advertising trends, leading to an undervaluation of the stock with a fair estimate of $27 per share, which is nearly 25% above the current market price [1] Financial Performance - For the first nine months of FY 2024, Sirius XM's revenues fell 2% year-over-year to $6.5 billion, driven by a 3% drop in subscriber revenue to $5 billion, while advertising revenue grew by 1% to $1.3 billion [2] - The company has reaffirmed its FY 2024 revenue guidance of $8.675 billion but has revised its FY 2025 revenue projection down to $8.5 billion, indicating limited growth with a notable revenue contraction of 0.6% in FY 2023 [2][3] - Sirius XM's total subscriber count decreased by 2% year-over-year to 33.2 million, reflecting a loss of about 800,000 subscribers since the end of 2021 [3][4] Subscriber Trends - The subscriber base has been declining since FY 2022, dropping from 34.2 million to 33.9 million in FY 2023, primarily due to slower growth in connected vehicle services and increased competition from streaming apps [4] - Sirius XM's monthly self-pay subscriber churn rate remains stable at 1.6%, but attracting new customers is a significant challenge [4][5] Competitive Landscape - Sirius XM faces intense competition from Spotify, which reported a 18.6% year-over-year revenue growth to $1.6 billion in Q3, surpassing Sirius XM's total subscriber revenue [4] - The company has launched a free ad-supported tier to counter competition, but results have been limited [4][5] Strategic Initiatives - Sirius XM's partnership with Howard Stern is set to expire in December 2025, highlighting the need for new deals with popular podcasts to maintain platform appeal [5][6] - The company has expanded its podcast offerings through strategic partnerships, including non-exclusive agreements with popular shows [6] Financial Challenges - Sirius XM has approximately $11 billion in debt and has expanded its pricing strategy to attract new users, which may risk existing subscribers downgrading to lower-cost options [7] - Revenue projections for FY 2025 are around $8.5 billion, with potential declines to about $8.3 billion by 2026 due to various challenges [7] Margin Analysis - Sirius XM's net margins fell from about 15% in 2021 to 13% in 2022, with a slight recovery to 14% in 2023, but there is a risk of margins declining to about 9% in the near term [8][9] Valuation Insights - Currently trading at about $22 per share, Sirius XM is valued at approximately 7x 2023 earnings and 8x estimated 2025 earnings, with a potential decline in net income from $1.3 billion in 2023 to about $750 million in 2026 [10] - If the company continues to underperform, investors may assign a lower multiple, potentially leading to a stock price of roughly $10 per share [10][11] Historical Performance - Sirius XM has experienced a decline in stock value over the past four years, with returns of 0% in 2021, -8% in 2022, -6% in 2023, and -58% in 2024 [12] Long-term Outlook - Despite current challenges, the company has a monopoly in satellite radio services and valuable expertise, suggesting potential for future success if a long-term view is adopted [14]

Many investors appreciate receiving dividends from companies. They often look at the current payout, the history of increases, and the company's financial statements to determine the dividend's sustainability.That's a fine place to start. But what if you want to know how much you'll receive in annual dividends?Sirius XM (SIRI -6.71%) pays regular quarterly dividends. How many shares do you need to own to receive $1,000 annually? Annual payoutsSirius XM recently executed a 1-for-10 reverse stock split. Adjus ...

NEW YORK, Jan. 7, 2025 /PRNewswire/ -- SiriusXM (NASDAQ: SIRI) plans to release its fourth quarter and full-year 2024 operating and financial results on Thursday, January 30, and plans to hold an investor call the same day at 8:00 a.m. ET. A live webcast will be available on SiriusXM's Investor Relations website at https://investor.siriusxm.com.To participate by telephone, please dial 877.407.4019 (Toll-free) or +1 201.689.8337 (Local) 10 minutes prior to the start of the call and ask to be connected to the ...

Shares of Sirius XM Holdings (SIRI 3.85%), a satellite radio company, plunged last month after the company provided updated financial guidance for 2025. Management said revenue and adjusted earnings before interest, taxes, depreciation, and amortization (EBITDA) would be lower than previous guidance.Investors were unnerved by the lowered expectations for 2025 and sent shares tumbling 15.4% in December, according to data provided by S&P Global Market Intelligence. Lowered expectationsSirius XM's management s ...

It's been a rough year for the media stock, but 2025 offers a lot of potential upside.There's no sugarcoating how 2024 played out for Sirius XM Holdings (SIRI -1.32%) shareholders. It's been a rough year. However, there's a lot of truth to the old mutual fund disclaimer that past results aren't an indicator of future performance.The satellite radio provider can bounce back in a major way in 2025. Let's go over some of the reasons this currently out-of-favor stock can roar back to life for investors in the m ...

SiriusXM (SIRI) is navigating a complex market landscape with a strategic approach that suggests the potential for recovery in 2025, despite a 57.5% decline in the year-to-date period. The company's third-quarter 2024 results reveal a business in transition, having completed its separation from Liberty Media and implementing aggressive initiatives to counter subscriber and revenue challenges.Year-to-date PerformanceImage Source: Zacks Investment ResearchWhile the company aims to reach ambitious targets of 5 ...

It's no secret that Warren Buffett loves dividend-paying value stocks, or "buying dollar bills for 80 cents," as he's sometimes put it.Now, the legendary investor seems to have found a new apple of his eye. Berkshire Hathaway (BRK.A -0.07%) (BRK.B 0.25%) has been aggressively buying shares of SiriusXM Holdings (SIRI 0.78%), the satellite radio company.On Thursday, Berkshire disclosed that it bought roughly 5 million more shares of the stock last week, bringing its ownership to 117.5 million, which is worth ...