It’s been a rough few months for JetBlue shareholders after the airline’s merger with Spirit Airlines was blocked by U.S. regulators. However, the stock is popping after hours on news that a billionaire hedge fund manager is dumpster diving and sees value in the stock. 💸
Activist investor Carl Icahn reported a nearly 10% stake, which he’s accumulated on the belief that the stock is undervalued following its recent selloff. He’s already had discussions with the company regarding possibly attaining board representation.
Bulls say this is a sure sign that the stock is undervalued and only has more upside from here. But bears pushed back, pointing to Icahn Enterprise’s own floundering stock price as evidence of poor management ability. They also noted that Icahn’s last foray into the airline industry, during the late 1980s, resulted in TWA being taken private and eventually filing for bankruptcy. ⚔️
With new CEO Joanna Geraghty taking the helm today, it’s clear she’s got a lot of work ahead of her to appease Icahn, shareholders, and many other stakeholders who have been left feeling uneasy by the last few years’ performance. We wish her the best in her new endeavor. 🫡
