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Warren Buffett's Berkshire Hathaway has ramped up its investment in Sirius XM, acquiring an additional 2.3 million shares valued at approximately $54 million. This move elevates Berkshire's stake in the digital audio company to about 35% of its outstanding shares, making Sirius the 15th-largest holding in its $300 billion portfolio. According to financial analysts, Sirius XM has faced challenges retaining subscribers amidst stiff competition from streaming services like Spotify.
Despite these hurdles, Sirius XM recently announced an increase in its subscriber count for the first time in 1.5 years, raising hopes among investors. However, analysts remain skeptical, with Bank of America’s Jessica Reif Ehrlich maintaining an "underperform" rating and projecting a $21 price target, indicating a potential 7% downturn from current levels. As Berkshire's stock purchases diverge from analyst recommendations, investors are left to speculate whether Buffett sees long-term value where others do not.