Since last Friday, shares of the digital audio company Sirius XM Holdings (NASDAQ: SIRI) are now trading 13.5% lower as of 1:52 p.m. ET Thursday. Sirius, a stock Warren Buffett’s Berkshire Hathaway has been piling into, fell after the company’s chief financial officer (CFO) spoke about concerns for the sector.
Start Your Mornings Smarter! Wake up with Breakfast news in your inbox every market day. Sign Up For Free »
At an industry event Tuesday, CFO Tom Barry made several comments about how tariffs, inflation, and other uncertainties have started to affect ad spending, which is a big driver of revenue at the company:
I think it’s adversely impacting the ad space. If you look at January and February of this quarter, we were stable. We were right in line where we thought we’d be. And in the last couple of weeks or week and a half, we’re starting to see a drop-off.
Barry added that the company saw some softness in ad spending from the retail and consumer packaged goods sectors over the past few weeks, and in other categories in recent days, which is starting to make him concerned about broader ad trends.
Recent data has pointed to weakness in the economy and maybe even signs of a recession or stagflation. Ad spending usually gets hit pretty hard in a recession, so any company in this space is going to feel some impact.
Sirius’ stock has struggled immensely, with shares down over 47% over the past year. Investors are worried about the demand for satellite radio in an increasingly competitive industry. Still, the company has developed a transformation plan that involves bringing on big podcast brands and streamlining their advertising and distribution strategy.
Buffett and his team seem to be on board, since Sirius has been one of a handful of stocks that Berkshire purchased in 2024. But the situation will likely take time to play out, and it’s going to be a show-me story. Patient investors can buy the stock and enjoy a nearly 5% dividend yield while they wait for the transformation to come to fruition.
Ever feel like you missed the boat in buying the most successful stocks? Then you’ll want to hear this.
On rare occasions, our expert team of analysts issues a “Double Down” stock recommendation for companies that they think are about to pop. If you’re worried you’ve already missed your chance to invest, now is the best time to buy before it’s too late. And the numbers speak for themselves:
Right now, we’re issuing “Double Down” alerts for three incredible companies, and there may not be another chance like this anytime soon.
*Stock Advisor returns as of March 10, 2025
Bram Berkowitz has no position in any of the stocks mentioned. The Motley Fool has positions in and recommends Berkshire Hathaway. The Motley Fool has a disclosure policy.
—
Blog powered by G6
Disclaimer! A guest author has made this post. G6 has not checked the post. its content and attachments and under no circumstances will G6 be held responsible or liable in any way for any claims, damages, losses, expenses, costs or liabilities whatsoever (including, without limitation, any direct or indirect damages for loss of profits, business interruption or loss of information) resulting or arising directly or indirectly from your use of or inability to use this website or any websites linked to it, or from your reliance on the information and material on this website, even if the G6 has been advised of the possibility of such damages in advance.
For any inquiries, please contact legal@gsix.org
