Key insights
- A retail investor is considering investing in Delta Airlines (DAL), citing strong leadership, industry recovery, and a seemingly cheap valuation. Concerns include demand pull-forward and the historical volatility of the airline industry. While not a definitive signal, increased retail interest in a specific stock can sometimes precede short-term price movements.
Hey reddit,
So I’ve had a couple decent investments (OXY @ $50) & Google @ $170 — this post was removed by moderators when people spammed the sub about google).
Nothing stellar, but a portfolio that’s slightly outperformed the S&P 500 and that I can sleep on in case some random black swan event happens.
Now I’m eye-ing 1 of the 2:
- GE Aerospace - Delta Airlines
I’m leaning towards delta for a couple reasons:
- Industry trend wise, flight demand is only have way recovered to pre-covid levels. And i know the aerospace after supply market has some tailwinds (the after supply market / mro super cycle)
- CEO wise, I’m a fan of Ed Bastian. I think he runs the company how it ought to be run. The culture, operating an oil refinery (though not fully insulated from oil price shocks), AMEX partnership, and MRO business. Everything he’s done and is doing just makes sense to me.
- When I listen to other airlines like United or American, those CEO’s seem fake and quite poorly positioned (always in catch up mode to Delta).
- The low cost airlines are being squeezed to death and the race to the bottom looks like it’s disappearing
- Delta’s balance sheet is back to precovid levels. I’ll say “strong” for an airline.
- price wise, Delta looks “cheap” today… though i’m not sure about “tomorrow”
Here’s my concerns with Delta:
- Are the recent demand surges (despite high fuel prices) a testimony to Delta being on top of the K or **demand pull-forward** due to anticipated oil shortages (i.e. similar to tariffs)
- Am i getting swept up in the good times of airlines and forgetting that even Delta went bankrupt at some point?
- Is the century of airlines being a bad business truly over?
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That said, I haven’t said much about GE Aerospace. But i don’t think i need to say much as that company has been thoroughly analyzed publicly. It’s just mighty expensive, thats all.
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So reddit, why shouldn’t i put a good size of my Google gains into Delta?
P.S. I apologize if this post is sloppy (this was not written with AI)