What Happened?

Shares of satellite radio and media company Sirius XM (NASDAQ:SIRI) jumped 6.4% in the morning session after the company reported impressive fourth-quarter earnings, which exceeded analysts' EPS and EBITDA expectations. On the other hand, its full-year revenue guidance slightly missed. Zooming out, we think this was a decent quarter featuring some areas of strength but also some blemishes.

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What The Market Is Telling Us

Sirius XM’s shares are very volatile and have had 29 moves greater than 5% over the last year. In that context, today’s move indicates the market considers this news meaningful but not something that would fundamentally change its perception of the business. 

The biggest move we wrote about over the last year was 4 months ago when the stock gained 7.6% on the news that a regulatory filing revealed that Warren Buffett's Berkshire Hathaway added to its position in the company (Sirius XM). Berkshire Hathaway bought 3.6 million shares (roughly $87 million) in the previous week. Berkshire Hathaway's total position was estimated to be around 108.7 million shares of Sirius XM or a 32% interest. Given the legendary investor's reputation for identifying quality opportunities in the stock market, the market is likely to read the information positively for the company's prospects in the near term.

Sirius XM is up 4.5% since the beginning of the year, but at $23.09 per share, it is still trading 55.9% below its 52-week high of $52.30 from January 2024. Investors who bought $1,000 worth of Sirius XM’s shares 5 years ago would now be looking at an investment worth $321.10.

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