Erick Mokaya's avatar
$102.4m follower assets
Erick Mokaya's avatar
$102.4m follower assets
In our newsletter this week:
🏦Takeaways from Jackson Hole symposium
💳Credit card delinquency rates up slightly
🎮A sharp slowdown in gaming revenue at $NVDA


JetBlue buys Spirit Airlines
Spirit Airlines $SAVE has been the best performing airline stock over the past year after receiving takeover bids from both JetBlue $JBLU and Frontier $ULCC. JetBlue appears to have had the winning bid. Let’s take a closer look at this deal!

In February, $SAVE announced plans to merge with $ULCC leading to the stock’s outperformance. $JBLU then came in with a higher offer and on July 27th Spirit took it. There’s been some interesting price action as a result!

This merger combines two of the smaller players in the industry but the combined airline would have $11B in revenue and represent 10% of the industry according to Forbes.



Anti-trust regulators aren’t happy. They had previously sued to block a combination of American Airlines $AAL and JetBlue $JBLU.

Want to read about what JetBlue $JBLU needs in order for this deal to go through?

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Airlines are firing on all cylinders
This summer's travel season is going to be massive.

United Airlines CEO said, "I’ve never seen in my career, and I’ve been in this industry a long time...such a hockey stick increase of demand."

Airlines are doing everything they can to get more pilots. Many are even dropping 4-year degree requirements.

While companies like $TGT and $PTON complain about excess inventory, $AAL $UAL and other airlines are complaining of a labor shortage.
Employee Efficiency
With Elon Musk talking about cutting 10% of jobs at Tesla $TSLA, the market has taken a hit. Many other companies have recently instituted a hiring freeze or laid off some employees.

Let's look at some industries to see the relationship between employee count and revenue!

Airlines✈️ -

Delta $DAL seems to be the only outlier generating more revenue than both $AAL and $UAL with fewer employees.

Retail 🛍️-

Costco $COST seems to have a large advantage generating more than double the revenue the expected revenue per employee.

Auto 🚗 -

Speaking of Elon, Tesla $TSLA doesn't seem to have a large advantage in this stat. In fact, both Ford $F and GM $GM look to be performing better based on this metric.

Software 💻 -

There doesn't seem to be any strong outliers for SaaS stocks. However, looks to have $DDOG has a slight advantage and $OKTA seems to have a slight disadvantage.

Like what you see?

You can make any of these charts in just three clicks from our home page!
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Did you travel over Memorial Day?
The surge in consumer demand, staff shortages, harsh weather, and high gas prices caused cancellations for many airliners.

Even still, could this increase in demand be an indicator of improved business fundamentals?

Although travel demand has risen in recent months, stock prices for top airliners have continued to fall. $UAL $ALK $AAL $JBLU $DAL $LUV

Counter to the drop in prices, these stocks have seen large increases in quarterly revenue production.

Not all growth is good growth.

As prices for fuel and staff shortages have put pressure on margins, only three of these airlines posted positive net income in their most recent quarter.

For some investors, free cash flow is the better measure of profitability as it shows the cash generated by a business over a given period.


What do you think? Are you a fan of airline stocks now that travel demand is booming?

If you are more of a fan of hotel stocks, or booking sites, Wiijii has you covered with these quick comparisons:


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I did travel over Memorial Day weekend--by car. And since I don't have a Tesla I was feeling well aware of the gas prices. Interesting to see $DAL topping revenue but with negative FCF. What's that about?
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Earnings Week (April 18) 1-day price action
We are up for another busy week of earnings! Here are the reports I will look into and how the stocks performed historically, 1 day after the earnings release.
My favorite earning plays this week are $JNJ $PG and $DHR. $SNAP is a good "lottery" play for the more courageous among us!
I will definitively avoid $TSLA and $NFLX on earning day.
Jonhson & Johnson $JNJ - April 19 before the open.
1-day performance in the past 12 quarters:
  • Average returns = +1.2% 🟢
  • Average price move = + / - 1.9%
  • % of positive returns = 75% 🟢

Netflix $NFLX - April 19 after the close
1-day performance in the past 12 quarters:
  • Average returns = -3.9% 🔴
  • Average price move = + / - 7.1% ⚠️
  • % of positive returns = 17% 🔴

Procter & Gamble $PG - April 20 before the open
1-day performance in the past 12 quarters:
  • Average returns = +1.0% 🟢
  • Average price move = + / - 2.0%
  • % of positive returns = 67% 🟢

Tesla $TSLA - April 20 after the close
1-day performance in the past 12 quarters:
  • Average returns = -1.2% 🔴
  • Average price move = + / - 6.5% ⚠️
  • % of positive returns = 33% 🔴

United Airlines $UAL - April 20 after the close
1-day performance in the past 12 quarters:
  • Average returns = -2.3% 🔴
  • Average price move = + / - 4.2%
  • % of positive returns = 33% 🔴

Danaher $DHR - on April 21 before the open
1-day performance in the past 12 quarters:
  • Average returns = +1.6% 🟢
  • Average price move = + / - 2.1%
  • % of positive returns = 75% 🟢

American Airlines $AAL - April 21 before the open
1-day performance in the past 12 quarters:
  • Average returns = +0.3% 🟢
  • Average price move = + / - 4.2%
  • % of positive returns = 50% 🟢

$SNAP - April 21 after the close
1-day performance in the past 12 quarters:
  • Average returns = +10.3% 🟢
  • Average price move = + / - 20% ⚠️ 🎢 ⚠️
  • % of positive returns = 58% 🟢
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