- Shares of American Airlines slumped on Wednesday after the carrier cut its profit forecast for the current quarter, citing weakening pricing power despite expectations for record travel demand in the summer season.
The carrier has made a strategic shift away from lucrative corporate travel in a bid to grow its market share in smaller markets. However, excess capacity in such markets has been hurting its pricing power."It is clearer now that the strategy has not gone as planned," Jefferies analysts wrote in a note while downgrading the stock to "hold".
"A significant miss driven in part by close in bookings puts AAL’s ability to reap the full value of a robust summer flying season in greater doubt," Bernstein analyst David Vernon said in a research note. Stocks splits are usually bullish. Here are 8 expensive stocks that could get a boost by following Nvidia's 10-for-1 move.
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