Are Airlines Worth Investing In? Jim Cramer Shares His Thoughts
When it comes to investing in airline stocks, CNBC’s Jim Cramer has some insights to share, specifically about Delta Air Lines. In a recent assessment of Delta’s stock performance, Cramer pointed out the distinction between the company itself and its stock value.
While Delta as a company is praised for its operational excellence, Cramer highlighted that the airline industry as a whole is facing challenges. He noted that despite posting record revenue for the second quarter, Delta’s stock fell short of expectations. The airline’s share price also experienced a significant drop by the end of the trading day.
One key issue highlighted by Cramer is the competitive nature of the airline industry, with carriers engaging in a “race to the bottom” regarding pricing and seat availability. This dynamic can impact the overall performance of airline stocks, including Delta’s.
Despite Delta being considered the most profitable airline in the industry, Cramer urged investors to consider the performance of an entire sector before making investment decisions. He emphasized the importance of looking at a stock’s historical performance and how it compares to its competitors.
While Delta’s robust revenue may seem appealing at first glance, Cramer cautioned investors to assess the overall picture before jumping in. He suggested that a stock’s long-term growth potential and industry trends should be taken into consideration before making any investment.
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