Did Howard Stern Just Save Sirius XM, Again?

1 hour ago 1

Rick Munarriz, The Motley Fool

Mon, December 22, 2025 astatine 5:50 AM CST 5 min read

Sirius XM and Howard Stern person agreed to a caller three-year woody to support the vigor big connected the platform.
Sirius XM's subscriber basal and gross person somewhat declined successful caller years, but stableness is inactive a bully thing.
The stock's inexpensive valuation makes it a astute play connected Sirius XM's expanding flexibility.
10 stocks we similar amended than Sirius XM ›

Howard Stern fans volition beryllium capable to enactment disconnected the inevitable for astatine slightest different 3 years. The legendary vigor greeting amusement big announced past week that helium was renewing his declaration with Sirius XM Holdings (NASDAQ: SIRI) for different 3 years.

It came down to the wire, arsenic the erstwhile declaration negotiations betwixt Stern and the outer vigor monopoly had played retired implicit the past 20 years. However, for once, the renewal did travel arsenic a surprise. A twelvemonth ago, Sirius XM was targeting $200 cardinal successful yearly outgo savings for the media stock. Ending the woody with Stern would've gotten the media stock's bellwether astir halfway there. There were besides published rumblings this summertime astir Sirius XM getting acceptable to determination connected from the icon that enactment the level connected the representation 2 decades ago.

The extremity of the reign for the self-appointed "king of each media" was yet fathomable. Thankfully for Stern, his fans, and Sirius XM shareholders, it didn't crook retired that way.

A household singing on with the vigor connected a daytime drive.

Investing successful Sirius XM is nary longer wildly speculative. The outer vigor relation predates the epoch of WallStreetBets and meme stocks, but it had a akin vibe erstwhile it was a profitless but ascending concern astir 2 decades ago. It has matured implicit time, present catering much to worth investors than to devotees of maturation stocks. This isn't needfully a atrocious thing.

Revenue is declining somewhat for the 3rd consecutive year. Its subscriber basal has been gradually fading since peaking six years agone arsenic it approached 35 cardinal accounts. The flip broadside to those knocks is that Sirius XM banal is inexpensive successful an different buoyant market.

You tin bargain the banal for conscionable 6.7 times guardant earnings. Income investors are rewarded for their patience with a hefty 5.2% dividend yield. It continues to present much than $1 cardinal successful yearly escaped currency flow. Since Stern past renewed his declaration successful precocious 2020, Berkshire Hathaway (NYSE: BRK.A) (NYSE: BRK.B) has go Sirius XM's largest shareholder. It has to consciousness bully to cognize that generational capitalist Warren Buffett sees the worth successful your stock. Berkshire Hathaway investors presently ain 37.1% of Sirius XM's outstanding shares.