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Alaska Air - AI Stock Analysis

Analysis generated July 24, 2024

Alaska Air Group, Inc. is an American airline holding company based in SeaTac, Washington. It owns two certificated airlines, Alaska Airlines and Horizon Air. Known for its efficient operations and friendly customer service, the company has positioned itself as a significant competitor in the airline industry. With a focus on expanding routes and improving fleet efficiency, Alaska Air aims to grow its market share while maintaining high customer satisfaction.

Fundamental Analysis

For the last quarter, Alaska Air reported revenue of $2.23 billion. This marks a 14.87% decrease compared to the prior quarter, signaling some concern. However, compared to the same quarter last year, revenue increased by 2.62%, showing positive year-over-year growth.

Net income for the last quarter was $132 million. Although this figure represents a staggering 6,500.00% decrease compared to the previous quarter, it demonstrates a 7.04% increase compared to the same period last year. This indicates some volatility but also a positive trend when viewed year-over-year.

Earnings Before Interest, Taxes, Depreciation, and Amortization (EBITDA) for the last quarter came in at $6 million. This is a concerning 102.73% decrease compared to the prior quarter but an encouraging 94.74% increase from the same quarter last year.

The current Price to Earnings (P/E) ratio is 22.01, which is neither particularly high nor low, suggesting that the stock is reasonably valued in the market.

Technical Analysis

The current stock price for Alaska Air is $38.05. This represents an 8.99% decrease from a month ago but a more worrisome 21.03% decrease from a year ago, indicating a bearish trend in the long term.

The current Simple Moving Average over 10 days (SMA10) is $38.49, which is lower than the previous SMA10 of $38.52. This suggests a potential downward trend in price movement.

The Relative Strength Index (RSI) stands at 40, indicating a neutral condition. While not in the overbought or oversold territory, it nevertheless leans towards a weaker momentum.

Alternative Data Analysis

Job postings and employee sentiment data show that Alaska Air has 32 open positions, a 28% increase over the last couple of months. This indicates potential growth and expansion, a healthy sign for the company.

Business outlook among employees is neutral, signaling mixed feelings about the future.

When it comes to customer acquisition, Alaska Air's website garnered approximately 16 million visitors. However, this number is down by 11% over the last couple of months, a worrisome trend that could indicate a dip in customer interest.

Mobile app downloads are a bright spot, with approximately 5,200 daily downloads, up by 23% in recent months. This suggests potential growth in customer engagement.

Social media engagement is stable, with 640,000 Instagram followers and 400,000 Twitter followers, neither of which show significant changes in the past few months.

AltIndex's AI score for Alaska Air is 63, which serves as a buy signal based on fundamental, technical, and alternative data analysis.

Conclusion and Recommendation

Alaska Air demonstrates mixed signals in its stock analysis. The fundamental analysis reveals concerning decreases in revenue and net income quarter-over-quarter, but positive year-over-year growth. The technical analysis shows a bearish long-term trend, yet the RSI indicates that the stock is not yet oversold. Alternative data are also mixed, with increased job postings and mobile app downloads on one hand, but a decline in website visitors on the other.

Based on the combination of these factors, an investment in Alaska Air stock presents some risks but also potential rewards, particularly if the positive trends in alternative data continue. Given the AI score of 63, a buy signal, potential investors might consider a cautious "Buy" stance while closely monitoring future developments.

Disclaimer: This AI stock analysis, generated by an experimental AI tool, is for informational purposes only and not financial advice. Information is based on publicly available data and may not always be accurate or current.