SiriusXM stock has plummeted more than 60% over the past year, prompting Warren Buffett's Berkshire Hathaway to increase its investment in the satellite radio company. The company's shares recently hit a decade-low of $20.58.

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. Subscription revenue, which accounts for 70% of total revenue, has become increasingly unstable over the past five years.

The rise of digital streaming services like Spotify, YouTube Music, and Apple Music has impacted SiriusXM's market position. While SiriusXM attempted to enter the streaming market by acquiring Pandora in 2019, the company continues to rely heavily on its traditional satellite radio business. In contrast, 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 recently purchased approximately five million additional shares for $113 million, bringing its total holdings to 117.5 million shares—roughly a 35% stake worth $2.4 billion. Weitz Investment expressed optimism about SiriusXM's future, stating in their Q3 2024 letter that investors are "overly pessimistic" about the company's future cash flows.

As SiriusXM refocuses on its auto listening segment, multiple hedge funds are betting on the company's recovery, despite the challenging market conditions and increasing competition from mobile streaming services.

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