One stock that may look like an obvious buy at first glance is SiriusXM Holdings (SIRI -2.08%). On the surface, it is the sole company granted commercial satellite broadcast rights in the U.S. Moreover, it trades at a low valuation and offers a generous dividend, a likely reason for Warren Buffett’s Berkshire Hathaway to hold a 36% stake in the company.

Nevertheless, the stock fell in value over the last year. Knowing that, are there concerns with SiriusXM that should keep investors away, or is this an excellent holding that investors have overlooked?

Understanding the draw of SiriusXM stock

Initially, one can see why Buffett and his team have taken a considerable interest in SiriusXM. Its $1.08 in annual payouts gives its shareholders a dividend yield of 4.5%, far above the S&P 500 average yield of 1.2%.

Also, if one factors in the one-for-10 reverse stock split that came with the spinoff from Liberty Media, the payout has risen annually since 2017. Since the $405 million in free cash flow for the first half of 2025 was far higher than the $183 million in dividends paid during the period, it appears to offer its shareholders a rising, sustainable payout.

Additionally, as mentioned before, SiriusXM controls satellite radio in the U.S. Thus, it gives its listeners nationwide coverage and exclusive content from stars such as Conan O’Brien and Andy Cohen. Podcasts like SmartLess are also broadcast on the platform, helping to take its subscriber base to around 33 million.

Impairment costs in 2024 left it without a P/E ratio. Still, its forward P/E ratio, which excludes such one-time charges, is just under 9. This arguably makes it the kind of bargain that would draw investors like Buffett.

Why the SiriusXM value proposition may not be so obvious

Nevertheless, investors need to keep factors in mind that could undermine the company’s value proposition.

The first is involves whether SiriusXM is a monopoly. While it controls satellite-based radio content, listeners can get around that limitation through the country’s 5G coverage. Thus, those not subscribed to SiriusXM can still listen to content that providers broadcast everywhere.

That factor may explain its stagnant subscriber growth. Its 33 million subscriber base grew by only 34,000 over the last year and fell by 68,000 from the previous quarter. That lack of increase is likely to put off growth investors.

Also, since subscriber revenue dropped slightly, the company’s overall revenue for the first half of 2025 was $4.2 billion, a 3% decline from year-ago levels. That drop affected its financials across the board, meaning that its $409 million in net income during that timeframe fell from $595 million in the first two quarters of 2024.

Such a performance may help explain the stock’s tepid performance. It also implies that at least some investors may not perceive SiriusXM as an obvious choice.

Is SiriusXM stock an obvious buy right now?

Considering its challenges, SiriusXM stock is not an obvious buy.

Admittedly, the low forward P/E ratio and the high-yielding, rising dividend make it a likely draw for income-oriented investors. While it might be presumptuous to label it an obvious choice, one can see why value and dividend investors like this stock.

Still, SiriusXM is an unlikely option for growth investors. Technology has made its control of satellite radio less meaningful, and struggles with subscriber growth appear to have led to declines in its financials. That leaves investors with no apparent reasons to bid its stock price higher despite an attractive valuation.

Ultimately, SiriusXM can be a suitable choice for income investors, and it has drawn interest from notable value investors, such as Warren Buffett. However, since the stock warrants a closer look at its business and financials, no investor should treat it as an obvious choice.

In a filing with the court Saturday, attorneys on behalf of Cook asked the court to refuse an emergency request by the Trump administration for a stay of a lower court ruling that would clear the way for President Donald Trump to remove Cook from the Federal Reserve’s board of governors.

Lawyers for Cook argue that the Trump administration has not shown sufficient cause to fire her, and stressed the risks to the economy and country if the president were allowed to fire a Fed governor without cause.

“A stay by this court would therefore be the first signal from the courts that our system of government is no longer able to guarantee the independence of the Federal Reserve. Nothing would then stop the president from firing other members of the board on similarly flimsy pretexts. The era of Fed independence would be over. The risks to the nation’s economy could be dire,” according to the filing.

The court has given the Trump administration the option to respond to Cook’s filing by 3 p.m. Eastern on Sunday.

At stake is whether the Trump administration will succeed in its extraordinary effort to shape the board before the Fed’s interest rate-setting committee meets Tuesday and Wednesday. At the same time, Senate Republicans are pushing to confirm Stephen Miran, President Donald Trump’s nominee to an open spot on the Fed’s board, which could happen as soon as Monday.

Trump has accused Cook of mortgage fraud because she appeared to claim two properties as “primary residences” in July 2021, before she joined the board. Such claims can lead to a lower mortgage rate and smaller down payment than if one of them was declared as a rental property or second home.

Cook has denied the charges and sued the Trump administration to block her firing.

On Tuesday, U.S. District Court Judge Jia Cobb ruled the administration had not satisfied a legal requirement that Fed governors can only be fired “for cause,” which she said was limited to misconduct while in office. Cook did not join the Fed’s board until 2022.

The administration then appealed the decision and asked for an emergency ruling reversing the lower court order by Monday. In their emergency appeal, Trump’s lawyers argued that even if the conduct occurred before Cook’s time as governor, her alleged action “indisputably calls into question Cook’s trustworthiness and whether she can be a responsible steward of the interest rates and economy.”

If the Trump administration’s appeal succeeds, Cook would be removed from the Fed’s board until her case is ultimately resolved in the courts, and she would miss next week’s Fed meeting, when the central bank is set to decide whether to reduce its key interest rate.

If the appeals court rules in Cook’s favor, the administration could seek an emergency ruling from the Supreme Court.

The Fed is under relentless pressure from Trump to cut rates. The central bank has held rates steady since late 2024 over worries that the Trump administration’s unpredictable tariff policies will reignite inflation.

Last month, Fed Chair Jerome Powell signaled that Fed officials are increasingly concerned about weaker hiring, setting the stage for a rate cut next week. Most economists expect the Fed will cut its benchmark interest rate by a quarter-point to about 4.1%.

When the Fed reduces its key rate, it often, over time, lowers borrowing costs for mortgages, auto loans, and business loans. Some of those rates have already fallen in anticipation of cuts from the Fed.