Latest news with #VladimirGalkin
Yahoo
2 days ago
- Business
- Yahoo
Down 45%, Is JetBlue Stock a Buy?
The airline industry can be challenging and particularly vulnerable to rising fuel costs. JetBlue Airways is underperforming its peers, and a key investor is losing patience. 10 stocks we like better than JetBlue Airways › Everything seems to be going wrong for JetBlue Airways (NASDAQ: JBLU) these days. After all, airline stocks aren't the best place for investors right now, and JetBlue is doing worse than any of them, down 45% on a year-to-date basis. JetBlue stock is so depressed that it's essentially a penny stock now, which is the moniker given to stocks that has fallen below $5 per share. But now that JetBlue is down a whopping 86% from its all-time high, is it time for savvy investors to move in to buy a depressed stock on the dip? Or is this a case of catching a falling knife? In JetBlue's case, it appears to be much more the latter. If you had any hope in JetBlue, it probably vanished when the company issued its first-quarter earnings report on April 29. Revenue was down 3% from a year ago, falling to $2.14 billion, resulting in a net loss of $208 million. Earnings per share came in at a loss of $0.59, which was 2 cents better than analysts expected -- but still awful. Management said it was expecting second-quarter revenue per average seat mile to drop between 3.5% and 7% from the same quarter a year ago. In addition, JetBlue withdrew its full-year guidance. It gets even worse when you compare JetBlue to its major airline competitors. It's at the bottom of the barrel both for year-to-date performance and earnings per share. I'm also not convinced that JetBlue has what it takes to turn this around anytime soon. The Middle East remains at a flash point with Israel, Iran, and the United States right in the middle of it. Any disruption of the flow of oil -- such as the closure of the Strait of Hormuz -- would have a dramatic impact on oil prices. JetBlue estimates that it will pay between $2.25 and $2.40 per gallon for fuel this quarter. But unlike some air carriers, the company makes it a practice not to hedge fuel costs, instead choosing to buy at market prices. JetBlue believes its practice helps it decline from any declines in fuel prices. But if the prices go up, it is particularly vulnerable. Nobody likes to lose money, but investors also realize that it's part of the process -- particularly if you are a buy-and-hold investor. But nobody's willing to take losses with no hope of a return. So it's notable that Vladimir Galkin, who with a 10% stake in JetBlue stock is the company's second-largest investor, says he's thinking about pulling out. He told Reuters: "I am underwater a little bit and just going to have to hold on to it. I don't want to say for as long as it takes, obviously, but maybe for another year." Wall Street tends to agree. The consensus opinion on Wall Street, according to Yahoo! Finance, is that JetBlue's price will fall before it recovers, and no analysts gives it a buy rating. The airline industry can be challenging. Aircraft are tremendously expensive, they require constant maintenance, and labor costs are rising, which puts more pressure on airline profitability. In addition, airlines always face pressure from the consumer side, as passengers are very sensitive to price increases and there's always a competing airline looking to undercut the market. Turning specifically to JetBlue, there's a lot of red flashing warning lights. Between its underperformance compared to the rest the market, the challenging state of airline stocks in general, economic uncertainties, volatility in the fuel market, analyst sentiment, and the public concerns of a top investor, any investor would be wise to take a step back. And if Galkin follows through with his plan to exit his position next year should the stock not turn around, that will put even more downward pressure on JetBlue stock. Galkin holds about 35 million shares and his departure would be like a no-confidence vote on JetBlue's future. JetBlue is a struggling penny stock and it's likely going to remain that way for some time. Best to stay away from this one. Before you buy stock in JetBlue Airways, consider this: The Motley Fool Stock Advisor analyst team just identified what they believe are the for investors to buy now… and JetBlue Airways wasn't one of them. The 10 stocks that made the cut could produce monster returns in the coming years. Consider when Netflix made this list on December 17, 2004... if you invested $1,000 at the time of our recommendation, you'd have $713,547!* Or when Nvidia made this list on April 15, 2005... if you invested $1,000 at the time of our recommendation, you'd have $966,931!* Now, it's worth noting Stock Advisor's total average return is 1,062% — a market-crushing outperformance compared to 177% for the S&P 500. Don't miss out on the latest top 10 list, available when you join . See the 10 stocks » *Stock Advisor returns as of June 23, 2025 Patrick Sanders has no position in any of the stocks mentioned. The Motley Fool recommends Delta Air Lines and Southwest Airlines. The Motley Fool has a disclosure policy. Down 45%, Is JetBlue Stock a Buy? was originally published by The Motley Fool
Yahoo
6 days ago
- Business
- Yahoo
JetBlue's second-largest investor will consider selling stake without changes
By Doyinsola Oladipo NEW YORK (Reuters) -JetBlue Airways' second-largest investor, Vladimir Galkin, is threatening to sell his near 10% stake in the struggling air carrier if the company's cost-cutting plan and other broader efforts fail to turn around its performance. Galkin, who lives in Miami, Florida, was a big winner from Gamestop's "meme stock" rally in 2021 and invested over $200 million in JetBlue between February and August 2024. The New York air carrier has been struggling with weakened travel demand, as the company withdrew its full-year forecast in April, saying it is unlikely to break even in 2025. Shares are down 43% year-to-date, while peers Delta Air Lines and United Airlines are down 17% and 18%, respectively. That's left Galkin sitting on a losing position. "I am underwater a little bit and just going to have to hold on to it. I don't want to say for as long as it takes, obviously, but maybe for another year," Galkin told Reuters. He has approximately 35 million shares, or $212 million invested in the company, according to a September U.S. regulatory filing, a position he confirmed with Reuters. JetBlue in June reiterated plans to cut costs and focus on more profitable routes. Galkin said the memo was positive, but that the company's "trajectory will be evident" in coming quarters. He said JetBlue should consider reducing the size of its 13-member board to also cut costs, but did not say what other cuts he would make. "The cost savings measures from the recent memo are part of JetForward and a continuation of our previously stated commitment to reduce costs, particularly as the industry as a whole has seen a macroeconomic step back in consumer demand," the company said in a statement. JetForward is the company's multi-year plan to boost profits and deliver $800 million to $900 million in earnings before interest and taxes through 2027. Galkin later said selling in one year was not a set deadline as he is hopeful JetBlue will start making money "sooner rather than later." He added that he thinks Wall Street is underestimating the potential of JetBlue's collaboration with United, which will allow travelers to book flights on both carriers' websites beginning in 2027. JetBlue has reported profits in two of the last nine quarters. As of May 23rd, 10 equity analysts have a hold recommendation on the stock, with five "sell" and two "strong sell" ratings, according to LSEG data. There are no "buy" ratings. Other large JetBlue investors, including BlackRock, Fidelity and T. Rowe Price, declined comment. On Tuesday, the company announced business-class seats on its Orlando-to-Las Vegas route as it - along with rivals like Spirit - focuses on premium seats to boost revenue. "It's a positive in the sense that they're not putting their head in the sand," said Michael Matousek, head trader at U.S. Global Investors, which owns 1.4% shares of the company in the JETS exchange-traded fund (ETF). He said the company's plans to shed unprofitable routes and focus on higher-margin opportunities is positive for the long term. Error in retrieving data Sign in to access your portfolio Error in retrieving data Error in retrieving data Error in retrieving data Error in retrieving data
Reuters
6 days ago
- Business
- Reuters
JetBlue's second-largest investor will consider selling stake without changes
NEW YORK, June 26 (Reuters) - JetBlue Airways' (JBLU.O), opens new tab second-largest investor, Vladimir Galkin, is threatening to sell his near 10% stake in the struggling air carrier if the company's cost-cutting plan and other broader efforts fail to turn around its performance. Galkin, who lives in Miami, Florida, was a big winner from Gamestop's "meme stock" rally in 2021 and invested over $200 million in JetBlue between February and August 2024. The New York air carrier has been struggling with weakened travel demand, as the company withdrew its full-year forecast in April, saying it is unlikely to break even in 2025. Shares are down 43% year-to-date, while peers Delta Air Lines and United Airlines are down 17% and 18%, respectively. That's left Galkin sitting on a losing position. "I am underwater a little bit and just going to have to hold on to it. I don't want to say for as long as it takes, obviously, but maybe for another year," Galkin told Reuters. He has approximately 35 million shares, or $212 million invested in the company, according to a September U.S. regulatory filing, a position he confirmed with Reuters. JetBlue in June reiterated plans to cut costs and focus on more profitable routes. Galkin said the memo was positive, but that the company's "trajectory will be evident" in coming quarters. He said JetBlue should consider reducing the size of its 13-member board to also cut costs, but did not say what other cuts he would make. "The cost savings measures from the recent memo are part of JetForward and a continuation of our previously stated commitment to reduce costs, particularly as the industry as a whole has seen a macroeconomic step back in consumer demand," the company said in a statement. JetForward is the company's multi-year plan to boost profits and deliver $800 million to $900 million in earnings before interest and taxes through 2027. Galkin later said selling in one year was not a set deadline as he is hopeful JetBlue will start making money "sooner rather than later." He added that he thinks Wall Street is underestimating the potential of JetBlue's collaboration with United, which will allow travelers to book flights on both carriers' websites beginning in 2027. JetBlue has reported profits in two of the last nine quarters. As of May 23rd, 10 equity analysts have a hold recommendation on the stock, with five "sell" and two "strong sell" ratings, according to LSEG data. There are no "buy" ratings. Other large JetBlue investors, including BlackRock, Fidelity and T. Rowe Price, declined comment. On Tuesday, the company announced business-class seats on its Orlando-to-Las Vegas route as it - along with rivals like Spirit - focuses on premium seats to boost revenue. "It's a positive in the sense that they're not putting their head in the sand," said Michael Matousek, head trader at U.S. Global Investors, which owns 1.4% shares of the company in the JETS exchange-traded fund (ETF). He said the company's plans to shed unprofitable routes and focus on higher-margin opportunities is positive for the long term.
Yahoo
6 days ago
- Business
- Yahoo
JetBlue's second-largest investor will consider selling stake without changes
By Doyinsola Oladipo NEW YORK (Reuters) -JetBlue Airways' second-largest investor, Vladimir Galkin, is threatening to sell his near 10% stake in the struggling air carrier if the company's cost-cutting plan and other broader efforts fail to turn around its performance. Galkin, who lives in Miami, Florida, was a big winner from Gamestop's "meme stock" rally in 2021 and invested over $200 million in JetBlue between February and August 2024. The New York air carrier has been struggling with weakened travel demand, as the company withdrew its full-year forecast in April, saying it is unlikely to break even in 2025. Shares are down 43% year-to-date, while peers Delta Air Lines and United Airlines are down 17% and 18%, respectively. That's left Galkin sitting on a losing position. "I am underwater a little bit and just going to have to hold on to it. I don't want to say for as long as it takes, obviously, but maybe for another year," Galkin told Reuters. He has approximately 35 million shares, or $212 million invested in the company, according to a September U.S. regulatory filing, a position he confirmed with Reuters. JetBlue in June reiterated plans to cut costs and focus on more profitable routes. Galkin said the memo was positive, but that the company's "trajectory will be evident" in coming quarters. He said JetBlue should consider reducing the size of its 13-member board to also cut costs, but did not say what other cuts he would make. "The cost savings measures from the recent memo are part of JetForward and a continuation of our previously stated commitment to reduce costs, particularly as the industry as a whole has seen a macroeconomic step back in consumer demand," the company said in a statement. JetForward is the company's multi-year plan to boost profits and deliver $800 million to $900 million in earnings before interest and taxes through 2027. Galkin later said selling in one year was not a set deadline as he is hopeful JetBlue will start making money "sooner rather than later." He added that he thinks Wall Street is underestimating the potential of JetBlue's collaboration with United, which will allow travelers to book flights on both carriers' websites beginning in 2027. JetBlue has reported profits in two of the last nine quarters. As of May 23rd, 10 equity analysts have a hold recommendation on the stock, with five "sell" and two "strong sell" ratings, according to LSEG data. There are no "buy" ratings. Other large JetBlue investors, including BlackRock, Fidelity and T. Rowe Price, declined comment. On Tuesday, the company announced business-class seats on its Orlando-to-Las Vegas route as it - along with rivals like Spirit - focuses on premium seats to boost revenue. "It's a positive in the sense that they're not putting their head in the sand," said Michael Matousek, head trader at U.S. Global Investors, which owns 1.4% shares of the company in the JETS exchange-traded fund (ETF). He said the company's plans to shed unprofitable routes and focus on higher-margin opportunities is positive for the long term. Sign in to access your portfolio
