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Today we are watching…
1. DowDuPont (#dowdupont)
DuPont are one of the worldâs largest chemical companies. Today, theyâll pull off a fancy reverse stock split. Invstrs will get 1 share for the value of 3 yesterday. For a company spinning off multiple divisions and looking to inspire a bit of confidence, DuPont will hope this split lures in some big-wig institutional investors with new lowered costs of buying shares. Will it pay off for the stock? Weâll see.
2. Coupa Software (#coupa)
This cloud-based software firm is a tale of two extremes. Whilst its expanding customer base has won it revenue estimates up 31% on the year, its suffering margins have turned expectations on their head; a profit loss of 23%. Ultimately, itâs the profits that go in invstrâs pockets, so the market will have its eyes glued to that number as quarterly results trickle through.
Avengers Crushes Box-Office Records
The worldâs airlines are on the back foot. IATA, the industryâs biggest trade association, has just grounded profit expectations by cutting them back over a fifth! Thatâs left invstrs pondering both their airline holdings, and whether weâre heading for a more serious industry slowdown. Mondays, eh?
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For a side hustle, airlines sometimes move commercial cargo if they have space in their holds. Trade tensions stemming from the US and China are impacting the amount of cargo with which they can fill up their holds. The upshot? Invstrâs are faced with weakened revenues, even less of which are making it to the bottom line due to the rising cost of jet fuel.
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If thereâs a saving grace for the airlines, itâs that passengers still have a healthy appetite for flying. With the economy still in good shape overall, holidays and business trips are expected to see airlines through their coming earnings. Airlines added one seat to their planes for every 20 in the last quarter, trying to capture this demand.
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Yet, weâre not in normal times. In March, 2 of Boeingâs new 737s went down, exposing an out-of-sorts blip in flight safety. Emirates President Tim Clark worries that the repair job for the faulty 737 could spark loud disagreements between regulators if they donât âall get onboardâ, which risks prompting a fear of flying among the public. Now of all times!