Did Warren Buffett Make a Mistake This Month?
There were more eyes than usual on Sirius XM Holdings (NASDAQ: SIRI) this week in anticipation of the satellite radio operator posting third-quarter results on Oct. 31. With Warren Buffett's Berkshire Hathaway (NYSE: BRK.A) (NYSE: BRK.B) adding to his substantial stake earlier this month, investors were circling Thursday morning's financial update to see if the legendary investor saw something that the rest of the market was missing.
With Sirius XM shares cut in half in 2024, the former battleground stock isn't giving up much of a fight this year. The country's lone satellite radio platform could've turned sentiment around with a blowout performance, but it was a dud at first glance. But that doesn't mean that Buffett made a mistake.
Paying a premium for satellite radio isn't much of a priority for drivers these days. They have access to a growing number of streaming apps that they can seamlessly play through their connected cars and trucks. This isn't new. This will be the tenth consecutive year that Sirius XM fails to deliver organic double-digit revenue growth.
Source Fool.com
