Why Sirius XM Is in Rally Mode Today

Motley Fool12-21 04:07

Berkshire Hathaway disclosed an increase in its Sirius XM stock last night. Warren Buffett's conglomerate appears to have taken advantage of this week's market weakness. Is this beaten...

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Given the recent pessimism in the stock, it appears Wechsler still thinks SiriusXM's core audience is intact, and that recent failed efforts to find new audiences outside auto-based commuters isn't that big of a deal.If he's right, the stock does look awfully cheap. Even with the new forecast for slight revenue and EBITDA declines in 2025, Sirius actually forecast growth in free cash flow from $1 billion in 2024 to $1.15 billion in 2025, thanks to $200 million in cost cuts. That means the stock trades at just 7 times next year's cash flow.  The key will be whether SiriusXM can maintain its","collect":0,"end_time":0,"defaultTopTitle":"fool.com","property":[],"viewcount":null,"language":"en","relate_stocks":{"LU1280957306.USD":"THREADNEEDLE (LUX) US CONTRARIAN CORE EQUITIES \"AUP\" (USD) INC","IE00BKDWB100.SGD":"PINEBRIDGE US LARGE CAP RESEARCH ENHANCED \"A5H\" (SGDHDG) ACC","LU1914381329.SGD":"Allianz Best Styles Global Equity Cl ET Acc H2-SGD","LU1169590202.USD":"ALLSPRING (LUX)  U.S. SELECT EQUITY \"I\" (USD) ACC","IE00B3S45H60.SGD":"Neuberger Berman US Multicap Opportunities A Acc SGD-H","LU0234572021.USD":"高盛美国核心股票组合Acc","BK4559":"巴菲特持仓","BK4588":"碎股","LU1363072403.SGD":"Fidelity Global Financial Services A-ACC-SGD","LU0251142724.SGD":"Fidelity America A-SGD","IE00BK4W5L77.USD":"HSBC GLOBAL FUNDS ICAV US EQUITY INDEX \"HC\" (USD) ACC","LU0130102774.USD":"Natixis Harris Associates US Equity RA USD","IE00BWXC8680.SGD":"PINEBRIDGE US LARGE CAP RESEARCH ENHANCED \"A5\" (SGD) ACC","LU0251131958.USD":"FIDELITY AMERICA \"A\" (USD) ACC","BK4581":"高盛持仓","LU0157215616.USD":"FIDELITY GLOBAL FOCUS \"A\" INC","LU0648001328.SGD":"Natixis Harris Associates US Equity RA SGD","IE000M9KFDE8.USD":"NEUBERGER BERMAN US LARGE CAP VALUE \"A\" (USD) ACC","LU0787776722.HKD":"AB SELECT US EQUITY PORTFOLIO \"A\" (HKD) ACC","LU0971096721.USD":"富达环球金融服务 A","IE00B1BXHZ80.USD":"Legg Mason ClearBridge - US Appreciation A Acc USD","LU1074936037.SGD":"JPMorgan Funds - US Value A (acc) SGD","LU0149725797.USD":"汇丰美国股市经济规模基金","IE0034235303.USD":"PINEBRIDGE US RESEARCH ENHANCED CORE EQUITY \"A\" (USD) ACC","XM":"Qualtrics International","LU0640476718.USD":"THREADNEEDLE (LUX) US CONTRARIAN CORE EQ \"AU\" (USD) ACC","LU1201861249.SGD":"Natixis Harris Associates US Equity PA SGD-H","LU0256863811.USD":"ALLIANZ US EQUITY \"A\" INC","LU0742534661.SGD":"Fidelity America A-SGD (hedged)","BK4176":"多领域控股","LU1366333091.USD":"FIDELITY GLOBAL FOCUS \"A\" (USD) ACC","LU0980610538.SGD":"Natixis Harris Associates US Equity RA SGD-H","LU1093756168.USD":"FRANKLIN K2 ALTERNATIVE STRATEGIES \"A\" (USD) ACC","BRK.B":"伯克希尔B","BK4023":"应用软件","BRK.A":"伯克希尔","IE00B775SV38.USD":"NEUBERGER BERMAN US MULTICAP OPPORTUNITIES \"A\" (USD) ACC","SIRI":"Sirius XM Holdings Inc.","LU1169589451.USD":"ALLSPRING (LUX)  U.S. SELECT EQUITY \"A\" (USD) ACC","IE00BK4W5M84.HKD":"HSBC GLOBAL FUNDS ICAV US EQUITY INDEX \"HC\" (HKD) ACC","LU0234570918.USD":"高盛全球核心股票组合Acc Close","LU0170899867.USD":"EASTSPRING INVESTMENTS WORLD VALUE EQUITY  \"A\" (USD) ACC","LU0417517546.SGD":"Allianz US Equity Cl AT Acc SGD","LU0053666078.USD":"摩根大通基金-美国股票A（离岸）美元","LU0048573561.USD":"FIDELITY AMERICA \"A\" (USD) INC","BK4534":"瑞士信贷持仓","LU1093756325.SGD":"FTIF - Franklin K2 Alt Strat Fd A (acc) SGD-H1","BK4533":"AQR资本管理(全球第二大对冲基金)","BK4100":"有线和卫星","IE00B1XK9C88.USD":"PINEBRIDGE US LARGE CAP RESEARCH ENHANCED \"A\" (USD) ACC"},"translate_title":"为什么Sirius XM今天处于反弹模式","themeId":null,"isJumpTheme":false,"ttsUrl":null,"symbols_score_info":{"XM":1,"SIRI":1,"BRK.A":0.9,"BRK.B":0.9},"content_text":"Berkshire Hathaway disclosed an increase in its Sirius XM stock last night. \n\n\n\n\n\n\n\nWarren Buffett's conglomerate appears to have taken advantage of this week's market weakness. \n\n\n\n\n\n\n\nIs this beaten-down value stock also right for your portfolio? \n\nShares of SiriusXM (SIRI 12.00%) were rallying big today, up 12.3% as of 1:37 p.m. ET.While most of the market was up today on the back of a better-than-feared personal consumption price index report, beaten-down Sirius got an extra oomph thanks to Warren Buffett and his investing staff at Berkshire Hathaway (BRK.A 1.35%) (BRK.B 1.20%), which disclosed an increased stake in Sirius last night.Buffett & Co. try to bottom-tick SiriusOn Thursday night, Berkshire Hathaway filed a Form 4 with the Securities and Exchange Commission, disclosing it had increased its stake in three stocks, with Sirius being one of them. Berkshire typically discloses its buys and sells 45 days after quarter-end, but when Berkshire owns more than 10% of a company, as it does with Sirius, it must issue a filing immediately.Between Dec. 17 and 19, Berkshire accumulated roughly 5 million shares of Sirius for about $113 million. This increase brought Berkshire's total holdings in Sirius to about 117.5 million shares, good for a 35% stake in the satellite radio platform worth about $2.7 billion.Sirius came under renewed pressure earlier this month after the company released a strategic update, indicating its revenue and adjusted earnings before interest, taxes, depreciation, and amortization (EBITDA) would be slightly lower next year than in 2024, and that the company was also cutting investments and refocusing the business on its core automotive subscriber. Then of course we experienced market weakness this week on top of that following Wednesday's Federal Reserve interest rate decision and more hawkish outlook for 2025.This double whammy sent Sirius' stock down a touch below $20 per share at one point, its lowest level in many years. That's when Berkshire stepped in to buy even more.Should you follow Berkshire Hathaway into Sirius?It is believed that Ted Wechsler is the one that bought and is managing the Sirius position for Berkshire, but Wechsler certainly follows Buffett's value-investing approach. Given the recent pessimism in the stock, it appears Wechsler still thinks SiriusXM's core audience is intact, and that recent failed efforts to find new audiences outside auto-based commuters isn't that big of a deal.If he's right, the stock does look awfully cheap. Even with the new forecast for slight revenue and EBITDA declines in 2025, Sirius actually forecast growth in free cash flow from $1 billion in 2024 to $1.15 billion in 2025, thanks to $200 million in cost cuts. That means the stock trades at just 7 times next year's cash flow.  The key will be whether SiriusXM can maintain its audience, or whether music streaming apps will disrupt its business. As of now, Berkshire appears to be betting on Sirius hanging in there with its proprietary radio personalities and embedded partnerships with automakers.","kind":"highlight","is_publish_news":true,"is_publish_highlight":false,"is_publish_live":false,"is_publish_wemedia":null,"editions":null,"column":"","sentiment":"1","news_tag":"movement","news_rank":0,"symbols":[],"gpt_button":0},"commentList":[],"isCommentEnd":true,"newsSizeData":{"likeSize":0,"commentSize":0,"repostSize":0,"favoriteSize":0,"likeStatus":false,"favoriteStatus":false},"APP":{"userAgent":"Mozilla/5.0 AppleWebKit/537.36 (KHTML, like Gecko; compatible; ClaudeBot/1.0; +claudebot@anthropic.com)","isDev":false,"isTTM":true,"deviceId":"web-server-community-laohu8-v3","version":"4.29.3","shortVersion":"4.29.3","platform":"web","vendor":"web","appName":"ttm","isIOS":false,"isAndroid":false,"isTiger":false,"isTHS":false,"isWeiXin":false,"isWeiXinMini":false,"isWeiBo":false,"isQQ":false,"isBaiduSwan":false,"isBaiduBox":false,"isDingTalk":false,"isToutiao":false,"isOnePlus":false,"isHuaWei":false,"isXiaomi":false,"isXiaomiWebView":false,"isOppo":false,"isVivo":false,"isSamsung":false,"isMobile":false},"href":"/m/news/2493511471"}