Warren Buffett Doubles Down on Sirius XM Amid Analyst Skepticism

USUnited States|

Warren Buffett's Berkshire Hathaway has increased its stake in Sirius XM, acquiring an additional 2.3 million shares valued at approximately $54 million, bringing its total ownership to about 35% of the satellite radio company's outstanding shares. This move comes as some analysts express concerns over Sirius XM's competitive position in the market, particularly facing pressure from larger music and podcast platforms like Spotify.

Despite these pressures, Berkshire views Sirius XM's low valuation at approximately 8.5 times forward earnings as a potential for growth. Sirius XM reported its first increase in subscribers after 18 months and projects substantial growth in free cash flow through various initiatives. While Bank of America analyst Jessica Reif Ehrlich has maintained an underperform rating on the stock, four of the last twelve analysts reviewed noted a sell recommendation.

Berkshire Hathaway appears confident in Sirius XM's long-term strategy, fitting the firm's investment philosophy of identifying companies with potential for recovery. Sirius XM currently offers a 4.2% dividend yield, providing ongoing returns as Buffett's team anticipates the company's improvements.

Weekly Newsletter

Loading...

More from United States

Trump Reaches Out to Putin as Ukraine War Persists

In an exclusive interview with the New York Post, U.S. President Donald Trump announced he has spoken to Russian President Vladimir Putin regarding efforts to end the ongoing Ukraine war, stating that Putin "does care" about the casualties. Trump emphasized the urgency, remarking, "All those dead people... for no reason" and expressed hope for a rapid resolution to the conflict, which has lasted nearly three years. Putin has reportedly shown willingness to engage in direct negotiations with Ukraine but refuses to recognize Ukrainian President Volodymyr Zelenskyy, labeling him "illegitimate." Trump reiterated his belief that the war would not have occurred under his administration and criticized current President Joe Biden's handling of relations with Russia. Additionally, Trump proposed a $500 million deal with Ukraine, offering security guarantees in exchange for access to its rare-earth minerals and gas. Zelenskyy acknowledged the potential for a partnership but stressed the necessity of security assurances from U.S. allies. This dialogue unfolds as Vice President JD Vance prepares to meet Zelenskyy at the Munich Security Conference.
USUnited States

ADL Calls for Fox Sports to Condemn Controversial Kanye West Ad

The Anti-Defamation League (ADL) has urged Fox Sports to denounce an advertisement featuring Kanye West that aired during the Super Bowl, which linked to a website selling a T-shirt emblazoned with a Nazi swastika. This call comes in response to West's recent inflammatory comments on social media praising Hitler and identifying as a Nazi. The ADL stated, "At the Super Bowl, hate took a front-row seat," referencing both the ad's content and West's prior remarks that incited significant backlash. According to reports, the advertisement aired on Fox affiliates in Los Angeles, Philadelphia, and Atlanta, though it did not reach a majority of viewers. The ad featured West sitting in a dentist's chair and prompted viewers to visit his website, yeezy.com, which at that time, showcased various clothing items. However, within an hour of the broadcast, the website was altered to feature only the swastika T-shirt, dubbed "HH-01," priced at $20. The station representatives did not comment on the situation, and West's account on the platform X has reportedly been deactivated.
USUnited States

Rep. Nancy Mace Accuses Ex-Fiancé of Sexual Misconduct in House Speech

In a dramatic address on the House floor, Rep. Nancy Mace (R-SC) accused her ex-fiancé, Patrick Bryant, of serious sexual misconduct, including physical abuse and recording sexual acts without consent. Mace, who has reported the allegations to local authorities, expressed frustration that South Carolina's Attorney General Alan Wilson has not acted on the evidence she provided. She claimed to have uncovered heinous crimes against women and underage girls, asserting that her speech aimed to shine a light on these issues due to perceived inaction from law enforcement. Mace’s speech was attended by several female supporters who she claimed had also been victimized. In his defense, Bryant categorically denied Mace’s allegations and expressed willingness to cooperate with any investigations. Following Mace's address, Wilson’s office dismissed her statements regarding the investigation as "categorically false," stating that no requests for assistance have been made regarding the alleged misconduct. Mace, who is contemplating a gubernatorial run in 2026, highlighted her commitment to advocating for victims of sexual crimes and legislative efforts to combat voyeurism.
USUnited States
All United States News ->