Jim Cramer on Delta: There's a difference between the stock and the company

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Although Delta posted record revenue for the second quarter of 2024, $15.41 billion still fell below expectations.

After Delta's revenue miss, CNBC's Jim Cramer said investors should understand that there is a difference between Delta as a stock and Delta as a company.

"Delta the company is terrific. Delta the airline stock is only as good as the weakest competitors, because they're leading a race to the bottom, and that's killing it," he said. If an investor is going to buy a stock, they should first evaluate how the stock and its cohorts have been doing over time, Cramer advised.on Thursday. He said investors should understand that there is a difference between Delta as a stock and Delta as a company."In recent years, we've convinced ourselves that the airline industry has discipline on pricing, but historically, that's not usually the case, and now there's a skunk at the garden party," he said.

Although Delta posted record revenue for the second quarter, the figures still fell below expectations, coming in at $15.41 billion versus the $15.45 billion consensus estimate from LSEG. Management reported a robust summer travel demand, with CEO Ed Bastian saying on the conference call that TSA travel volumes were up 7% from last year.

"If you're going to buy a stock, any stock, first see how it's done over time. Second, see how its cohort has done," he said."You can take one look at the jampacked plane and want to buy Delta Air Lines stock, or you can take one look at the pathetic chart, and know for sure that the stock's, sadly, simply not worth owning."Two 80-something journalists tried ChatGPT.

 

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