Underdog stock Sirius XM sees Warren Buffett's heavy buying! Pre-market surged violently by 18%

According to the Zhitong Finance and Economics APP, before the US stock market opened on Thursday, Sirius XM (SIRI.US), which focuses on providing radio services through satellites and the internet, saw its stock price soar by more than 18% to $3.450 at one point. As of the time of writing, the increase hovered around 7%, mainly due to Warren Buffett's Berkshire Hathaway making a significant increase in holdings of the stock in the second quarter. It is understood that Warren Buffett, known as the "Stock God," led Berkshire Hathaway to disclose a whopping 262.24% increase in its holdings of this radio company in the second quarter. Berkshire's 13F filing shows that Berkshire Hathaway increased its stake in Sirius XM from 36.7 million shares at the end of the first quarter to 132.9 million shares in the second quarter. Sirius XM is a well-known radio service company based in the United States, specializing in providing radio subscription services through satellites and the internet. The company offers a wide range of audio content, including music, radio programs, sports, news, and talk shows. Sirius XM's services cover North America, allowing users to receive various types of radio services through subscription services in cars, homes, or mobile devices. Sirius XM is renowned for its popularity in in-car entertainment systems and is one of the major satellite radio service providers in the US market. It attracts subscribers through exclusive content and personalized radio options. Sirius XM is not a stock favored by secondary market funds, and even in many popular online investment forums in the US, some investors have not heard of the stock. In terms of stock price performance, the stock has fallen by as much as 46.8% since the beginning of the year, with a drop of about 23% just last month. In the view of some analysts, Sirius XM's stock experienced a certain decline in 2024, and Buffett may believe that at the current price, Sirius XM is undervalued, providing a good long-term investment opportunity. In addition, Buffett has long shown interest in the media and entertainment industry, especially in companies with stable subscription revenue models like Sirius XM. Earlier this month, the company reported that second-quarter profits met market expectations, but revenue slightly declined due to subscriber losses in two core segments. Wall Street analysts have a neutral average outlook on the stock, consistent with SA Quant's hold rating, but the average target price for Sirius XM on Wall Street is as high as $3.78, indicating a potential upside of up to 30% in the next 12 months