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Delta Air Lines - AI Stock Analysis

Analysis generated July 14, 2024

Delta Air Lines, Inc. is a major American airline, offering domestic and international travel services to millions of passengers every year. Known for its extensive network, Delta services a vast number of destinations across the globe, making it one of the leading carriers in the aviation industry. Headquartered in Atlanta, Georgia, Delta is part of the SkyTeam alliance, which further extends its reach and partnership opportunities.

Fundamental Analysis

Revenue for the last quarter was $13.5 billion. Although this represents a decrease of 3.40% compared to the previous quarter, it shows a positive year-over-year growth of 8.23%. This suggests that while there might be short-term issues affecting revenue, the long-term outlook remains positive.

Net income for the last quarter was $37 million. This is a significant decrease of 98.18% compared to the prior quarter. However, when viewed year-over-year, there is a remarkable increase of 110.19%, indicating substantial improvements in profitability over the past year.

EBITDA for the last quarter was $532 million, marking a decrease of 57.91% from the previous quarter but an increase of 187.57% year-over-year. This substantial year-over-year growth in EBITDA shows the company’s improved operational efficiency despite recent challenges.

The current P/E ratio stands at 6.26. This low P/E ratio potentially indicates that Delta Air Lines is undervalued, which could make it an attractive option for long-term investors.

It is worth noting, however, that there has been recent insider selling, which could be a bearish signal indicating insiders' lack of confidence in the company's short-term prospects.

Technical Analysis

Today’s stock price is $43.62. This represents a 10.47% decrease compared to a month ago, which raises short-term concerns. Over the past year, the stock price has decreased by 5.50%, adding to long-term worries.

The current SMA10 (Simple Moving Average over 10 days) is 45.40, which is lower than the previous SMA10 of 45.78. This suggests a potential downward trend in Delta's stock price.

The RSI (Relative Strength Index) is at 42.6, indicating a neutral condition. While not yet oversold, this score suggests that the stock is somewhat balanced between buyers and sellers at present.

Alternative Data Analysis

Regarding job postings and employee sentiment, Delta Air Lines has 160 open positions, up by 60% in the last couple of months. This can be interpreted as a positive sign showing the company is looking to grow and expand.

However, customer acquisition data indicates concerns. The number of visitors to Delta's webpage is estimated at 52 million, down by 6% in recent months. Similarly, the daily mobile app download rate, estimated at 14,000 users, has also decreased by 5%. This trend is worrisome as it might reflect losing customer interest or emerging competition.

Customer engagement metrics are relatively stable, with 1.4 million followers on Instagram and 1.7 million on Twitter, showing no meaningful fluctuations.

The AltIndex AI score for Delta Air Lines is 48, which suggests a hold signal.

Conclusion

In conclusion, Delta Air Lines demonstrates mixed signals from a fundamental, technical, and alternative data perspective. While revenue and EBITDA show robust year-over-year improvement, the significant quarter-over-quarter decreases in net income and EBITDA raise red flags. The technical analysis indicates a bearish trend, with a significant drop in stock price over the past month and year. Alternative data shows a concern in customer acquisition metrics despite positive signals in job growth.

Based on the analysis, it may be prudent to adopt a cautious approach regarding Delta Air Lines. Given the low P/E ratio, long-term investors might find potential value in the stock if they are willing to weather short-term volatility. However, the current trends and insider selling suggest that a "hold" recommendation is appropriate at this time.

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.

The analytics provided are estimates and not a substitute for professional advice. All investments involve risks, including possible capital loss.
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