SiriusXM stock has plummeted more than 60% over the past year, prompting Warren Buffett's Berkshire Hathaway to increase its investment position. The company's shares have hit a 52-week low of $20.58, reaching their lowest point in over a decade.

Despite strong quarterly revenue growth before the COVID pandemic, SiriusXM has faced challenges since late 2021. The company's subscriber base has declined by approximately 800,000 since year-end 2021, with Q3 2024 showing a 5% drop to 33.2 million subscribers. This decline comes as listeners increasingly shift to digital streaming services like Spotify, YouTube Music, and Apple Music.

While SiriusXM attempted to enter the streaming market by acquiring Pandora in 2019, the company still relies heavily on its satellite radio subscribers, which account for 70% of total revenue. In contrast, competitor Spotify reported an 18.6% year-over-year revenue increase to $1.6 billion in Q3 2024, surpassing SiriusXM's entire subscriber revenue.

Berkshire Hathaway has recently purchased approximately five million additional shares of SiriusXM for $113 million, bringing its total holdings to 117.5 million shares—roughly a 35% stake worth $2.4 billion. This investment suggests confidence in SiriusXM's future potential, particularly as the company refocuses on its auto listening segment.

Weitz Investment's Q3 2024 letter to investors stated, "At current prices, we believe investors are overly pessimistic about SiriusXM's future cash flows," indicating that hedge funds see potential for recovery despite current market challenges.

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