$170.51 now Up 4% on the day. I was pretty sure they'd have a good report, and their balance sheet is solid. Easy call. It might have a little more upside left. Probably not too much for now.
Keep an eye on this company Freshworks. It bottomed out earlier around $20, it's $20.90 now. If it ever pulls back to around $19 on a market sell-off, it would be a good buy and hold. I would give it the thumbsup here, but I think it'll drop back again. Today at least. FRSH---> $20.90
Something that might be worth noting--- that no one else in the perma-bull media has mentioned or perhaps noticed... Right now SPY is 12% over it's 200 day moving average, and 9% over its 100 day. FWIW... this is the highest those numbers have been in 5 years.* Does it mean anything? You tell me. But there's no denying, we are waaay stretched out on those metrics. (*I didn't even bother to look at ten years. But its probably the case there too.)
I think the airlines are getting ready to make a nice move up. DAL in particular. The stock has consolidated off of the earnings drop, and it appears every dip below $40 is being bought. We're nearly 2 weeks into February, and this warm weather in the NE and across the Midwest is a boon for these guys. We've really only had one rash of cancellations this winter, back in mid January. They allow for cancellations when they issue forward guidance, so this is gravy for their bottom line. Not to mention the millions they save on de-icing costs. The other thing, when people look at their 401K's, IRA's, investment portfolios now, they're obviously going to feel a lot more "wealthy", and I think Spring break and Summer travel this year is going to set records. There's no shortage of demand, and ticket prices are up. I think DAL stock is getting ready to make a 10% jump. It'll happen fast when it does. It's $40 now. None of the airline stocks have enjoyed this rally, and of course Cramer has been saying they aren't going anywhere, that they're just trades. I disagree. I think we're gonna see some money move out of all these huge over-hyped winners, and move into this sector. The PE's are low again, back to where they historically sit. DAL is very well run and they are paying off debt, it deserves a little PE expansion. Looking at the chart, and taking into account all of the above, I think it's a buy and hold right here at $40. The only risk I can see, would be a possible geo-political event that spikes fuel prices, other than that... it should start climbing back up towards $50 very soon.
This is a major step for these guys. The stock closed at $5.90, but it's hard to understand all the financial engineering on their balance sheet. One would think the fact that they pretty much have zero revenue is priced in, and this company is obviously not a Nikola scam. Either way, this is a pretty big deal, and certainly an interesting development. (emphasis in last paragraph mine) FAA Approves Joby's Certification Plan for eVTOL Propulsion System Hanneke Weitering February 9, 2024 The FAA has accepted Joby Aviation’s certification plan for the electric propulsion system on its eVTOL aircraft, notching another milestone on the path to commercialization, the company announced on February 9. The California-based eVTOL developer finished submitting all of its certification plans to the FAA in July 2023. According to Joby, the newly accepted certification plan covers the aircraft’s electric propulsion unit—including motors, gearboxes, nacelles, coolant pumps, and electrical wiring—as well as the propeller system and variable pitch actuators. The five-seat air taxi uses a distributed electric propulsion system that the company developed as part of its earlier work with NASA. It features six propellers powered by independent electric propulsion units, with four on its wing and the other two on the tail. “We now have an approved path across our certification program for all of the structural, mechanical, and electrical systems of our aircraft,” said Joby’s president of aircraft OEM Didier Papadopoulos. “This sets the stage for our team to execute against that path with a well-defined approach to for-credit testing and analysis as we continue to lead the industry towards certifying an electric air taxi with the FAA.” Joby says it is close to finishing the third of five stages in its type certification process and has already gotten a head start on the fourth stage, during which the company will conduct thousands of tests and inspections in accordance with the certification plans agreed upon in stage three. According to Joby, it has already completed 30 “for-credit” tests with the FAA. For the fifth and final stage of Joby’s type certification process, the FAA will analyze and verify results from stage four testing. If all goes well, Joby will then obtain its type certificate sometime before the end of this year, with commercial air taxi operations launching in 2025.
Personally, I think that sounds a little ambitious. Assuming "everything does go right", at what scale will the commercial air taxi service start out at? 1 vehicle? 10? 100? They'll have to train a bunch of pilots, plus ramp up maintenance proportionally. And also... those "1000's of tests" in phase 4. That would scare me off the stock right there. Something is bound to come up, and the FAA could delay things for years. I mean in a lot of ways, it's like a biotech getting a new drug approved. They already had one crash last summer (remote piloted, no one was hurt) and it just seems to me that something is bound to come up the FAA won't like. So for now, it's still a story stock imo, it'll move up big one day on news or whatever, and then give it right back... or... the gains may hold if enough retail players chase it. It's been as high as $11, and they will certainly keep releasing updates, which can drive the retail momo. And make no mistake, my calling it a "story stock" is not a bash on this company, the tech is awesome. I just think it's still a long ways from becoming a revenue producing entity. If all this is already priced in, then buying it here at $6 and forgetting you own it for the next 10 years... you'll probably do pretty well. I mean they do have some powerful backing. Toyota, the USAF, NASA,.. a bunch. It's good stuff. But the revenue, (and I'm not even saying profit lol) imo is years away. Not 2025.
Most of these technologies are pretty far away. FSD, eVTOL, etc. require too much integration but I guess if it happens those companies will do well. I was thinking of these Quantum computer stocks that have done well when they finally got a usable product. Its interesting that most of these competitors to Tesla that have gone public already have a product but haven't done well. Of course their valuations got destroyed by going from ZIRP to 5.5% FF rate.
They must have gotten a write-up about the FAA's approval in one of the websites the WSB's kids go to for ideas. The author probably loaded up big Friday on the $6 calls and then published the article about it this weekend. Same ol' same ol'... nothing new under the sun in this silly game.