After markets closed on Monday, Delta Airlines (DAL) fell by nearly 12%. The airline cut its guidance for the first quarter.
Delta’s Q1 revenue will be in the range of 3% to 4%. This is well below the 7% - 9% prior guidance. The firm blamed a fall in consumer and corporate confidence. Customers are increasingly uncertain about the macroeconomic conditions. This is hurting domestic demand.
In the Bitcoin (BTC-USD) market, Microstrategy (MSTR) dropped by 16.68% yesterday to close at $239.27. Bitcoin prices closed at $78,900. It traded near $98,000 when the U.S. government said that it would establish a Strategic Bitcoin Reserve. Through President Trump’s Executive order, BTC fell as investors sold into the news. Most of Microstrategy’s assets are in Bitcoin.
AppLovin (APP), an advertising platform, traded at prices not seen since last November 2024. Investors are expecting advertising markets to weaken amid the risk of a recession.
Citi analysts defended APP stock and set a $600 price target. APP stock closed at $238.08. Citi cited EBITDA margins, equity values, and revenue growth rates of peers to come up with the price target.
The Trade Desk (TTD) and Unity Software (U) are also in the advertising space. While Unity has a gaming platform, it relies on ads to boost its revenue.
