4 Reasons to Buy Sirius XM Stock Like There's No Tomorrow

Core Viewpoint - Sirius XM Holdings has shown better-than-expected financial results, but market skepticism remains as analysts have lowered price targets despite a recent stock price increase [1][4]. Financial Performance - Sirius XM reported Q4 revenue of $2.19 billion, a 4$0.83, surpassing analyst expectations of $0.71 EPS and$2.17 billion in revenue [4]. - The company maintains its 2025 guidance of $8.5 billion in revenue,$2.6 billion in adjusted EBITDA, and $1.15 billion in free cash flow, indicating declines of 2% and 5% in revenue and EBITDA, respectively, but a 13% increase in free cash flow [5]. Investment Interest - Warren Buffett's Berkshire Hathaway has increased its stake in Sirius XM, now owning over a third of the company's outstanding shares, indicating confidence in the company's potential [6][8]. - The stock is currently trading at less than 8 times forward earnings, with a nearly 5% yield, suggesting it may be undervalued despite a challenging year [12]. Market Position and Challenges - Sirius XM's subscriber base is primarily in the U.S., with over 90% of its 33 million subscribers located there, positioning the company to potentially weather rising tariffs better than other businesses [9]. - The company faces challenges from inflation and potential impacts on new car sales, which are crucial for acquiring new subscribers, but increased time spent in cars due to return-to-office mandates could enhance retention and ad revenue [10][11].