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

Despite strong quarterly revenue growth before the COVID pandemic, SiriusXM has faced challenges since late 2021. The company's subscriber base has decreased by approximately 800,000 since year-end 2021, with Q3 2024 showing a 5% decline to 33.2 million subscribers. Subscription revenue, which accounts for 70% of total revenue, has been unstable over the past five years.

The decline can be attributed to increasing competition from digital streaming providers (DSPs) like Spotify, YouTube Music, and Apple Music. While SiriusXM attempted to enter the streaming market by acquiring Pandora in 2019, it hasn't significantly impacted their revenue composition. For comparison, Spotify reported Q3 2024 revenue growth of 18.6% year-over-year, reaching $1.6 billion—exceeding SiriusXM's entire subscriber revenue.

Berkshire Hathaway recently purchased approximately five million additional shares for $113 million, bringing their total holdings to 117.5 million shares—roughly a 35% stake worth $2.4 billion. Weitz Investment expressed optimism in their Q3 2024 letter to investors, stating that current market pessimism about SiriusXM's future cash flows may be excessive.

The company is reportedly refocusing on its auto-listening segment, and several hedge funds appear confident in SiriusXM's potential recovery despite current market challenges.

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