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Klarna, the buy now, pay later lender that’s headed for an initial public offering, said on Thursday that it’s signed on DoorDash as a partner, another sign of momentum for public market investors.

It’s DoorDash’s first BNPL alliance and gives users of the restaurant delivery service a new way to pay for meals. Klarna said in a press release that DoorDash customers will be able to pay in full at checkout, split payments into four equal interest-free installments, or defer to dates that align conveniently with payday schedules.

Klarna, which is headquartered in Sweden, filed its prospectus last week to list on the New York Stock Exchange. Revenue last year increased 24% to $2.8 billion, and adjusted operating profit was $181 million, swinging from a loss of $49 million a year earlier. CNBC reported on Monday that Klarna will be the exclusive provider of buy now, pay later loans for Walmart, taking a coveted partnership away from rival Affirm.

“Our partnership with DoorDash marks an important milestone in Klarna’s expansion into everyday spending categories,” said David Sykes, Klarna’s chief commercial officer, in Thursday’s release.

Klarna, founded in 2005, said in its prospectus that it has 675,000 merchant partners in 26 countries. It’s among the most hotly anticipated IPOs of the year following an extended stretch of historically little activity for new offerings.

This post appeared first on NBC NEWS

The Power Solutions stock price has bounced back in the past few days as market participants waited for its quarterly and annual financial results. The PSIX stock rose to $35 on Wednesday, up by 42% from its lowest level this month. So, is PSIX a good mid-cap stock to buy this year?

Power Solutions company background

Power Solutions is an American company that makes engines that are used in several industries like data centers,  natural gas, biofuels, forklifts, and other areas like pumps and utility vehicles. Its costumers are original equipment manufacturers in the US and other countries like in China. 

PSIX categorizes its business into three: power systems, industrial, and transportation. The power systems business represents about 49% of its business and is followed by industrial and transportation. 

Power Solutions International’s business has slowed in the past few years as demand for its engine solutions waned. Its annual revenue dropped to $459 million in 2023 from $481 million a year earlier. Revenues in the last four quarters dropped to $436 million. 

Still, this slowdown has not prevented the PSIX stock price from surging and being one of the best performers in Wall Street. Power Solutions stock peaked at $45.7 in 2024, up by over 2,547% from its lowest level during the year. 

PSIX earnings ahead

The next catalyst for the Power Solutions stock price will be its earnings, which will come out on Friday this week. 

The most recent numbers showed that Power Solutions revenue rose by 9% in the third quarter to $125 million. The gross and net profits rose to $36.4 million and $17.3 million, respectively. 

This growth was driven by the power solutions business that the data center segment has boosted. Most companies in the cloud computing industry, like Microsoft, Amazon, and Google have boosted their spending on data centers as demand for artificial intelligence rises. 

This growth, has in turn, led to more demand for power, which PSIX provides. Other companies with exposure to this industry like Rolls-Royce have done well too.

The other catalyst that propelled the Power Solutions stock price was that the management worked to improve its balance sheet. It did that by refinancing its debts and securing a new credit line that provides up to $120 million in cash at better rates. As part of this deal, the company also received a commitment from Weichai that allowed it to borrow up to $105 million. 

Many Wall Street analysts do not follow Power Solutions Limited since it has been a fairly small company. The average estimate is that its revenue will come in at $140.7 million, up by 34% from a year earlier. This revenue will bring the annual figure to $472 million, a 2.9% annual increase. It will then make $509 million this year.

A key concern about Power Solutions stock is that its valuation has become highly stretched in the past few months. 

Power Solutions International stock price analysis

PSIX stock chart by TradingView

The daily chart shows that the PSIX share price has been in a strong uptrend in the past few days. After bottoming at $24.50 this month, it has recovered to the current $35. The stock has moved above the 50-day and 100-day Exponential Moving Averages (EMA).

Oscillators like the Relative Strength Index (RSI) and the MACD have all pointed upwards. It also moved above the top of the trading range of the Murrey Math Lines at $31.25.

Therefore, the stock will likely continue rising a bit after publishing its financial results. If this happens, the next point to watch will be $37.5, the strong pivot reverse point. In the long term, however, the Power Solutions stock price may retreat as it moves to the distribution phase of the Wyckoff Theory.

The post Power Solutions stock price analysis: key targets ahead of earnings appeared first on Invezz

The Signet Jewelers stock price jumped by over 17% on Wednesday after the company published better-than-expected results and unveiled a reorganization plan. SIG shares jumped to a high of $60.27, up by 32% from its lowest point this year. It remains about 48% below its highest level in 2024. Still, SIG stock has formed a bearish pattern pointing to a crash.

Signet stock price soared after earnings

Signet is one of the biggest companies in the jewelry industry globally. It owns thousands of stores across nine brands, including popular names like Kay, Zales, Jared, Diamonds Direct, and James Allen. These brands cater to different customers, with Zales targeting fairly wealthy customers. 

Signet Jewelers published weak but better-than-expected financial results. Its fourth-quarter sales dropped to $2.352 billion from $2.49 billion a year earlier. 

Its operating income crashed to just $152 million from $416 million in the same quarter a year earlier. This drop happened as its margins continued to deteriorate. 

The management has now embarked on a strategy change as it seeks to boost its growth and lower operation costs. It has created a new strategy known as ‘Grow Brand Love’ and is meant to improve product quality and its sales. 

Signet to change strategy

The company’s change of strategy will see it reorganize its business by increasing its focus on online sales. It also plans to continue closing some of its top underperforming stores in the US and other markets.

The strategy will see the company focus on improving its top brands like Jared, Zales, and Kays. By nurturing brand royalty, the management hopes that it will bring in about $500 million in revenue. 

The strategy will also see the company grow its market share in its core bridal and gold businesses and then expand to adjacent categories. It hopes that putting more emphasis on this business will boost its market share from about 30% to over 40% over time. It also expects to grow the adjacent segments like fashion. 

Signet stock price also jumped after the management noted that it would simplify its structure and functions like marketing and merchandising. The CEO said:

“We will be reorganizing our store operations team to a brand-specific structure to manage efficiencies and improve speed of decision-making and execution. This will also enable each brand to identify and deliver more distinct experiences for their customers sharply.”

Analysts believe that Signet Jewelers business will continue experiencing slow growth in the coming years even as the number of weddings rise. The average estimate is that its annual revenue will be $6.7 billion this year, followed by $6.83 billion next year. 

These analysts expect the Signet stock price to jump to $79 in the long term from the current $56.65.

Signet stock price analysis

SIG chart from TradingView

The weekly chart shows that the SIG share price bounced back to a high of $56.65, up from its lowest level this month. This rebound happened after the stock hit a key support at $49.84, the neckline of the triple-top chart pattern at $106.55. 

The Signet share price has moved below the 50-week and 200-week Exponential Moving Averages (EMA). These two averages are about to make a bearish crossover, which would form a death cross-chart pattern. A death cross is one of the most bearish patterns in the market. 

Signet stock price is hovering at the 50% Fibonacci Retracement levels. Therefore, there is a risk that the SIG share price will have a bearish breakdown, potentially to the psychological point at $40. A move above the resistance point at $68.71, the 38.2% retracement point will invalidate the bearish view.

The post Signet stock price surges, but a risky pattern points to a crash appeared first on Invezz

The Shopify stock price rose on Wednesday after the Canadian company filed to change its US listing from the New York Stock Exchange (NYSE) to the Nasdaq. It moved back above $100 even though the listing change will not have an impact on its business. So, what next for the SHOP share price, and is it a good buy after forming a megaphone pattern?

Shopify stock has wavered this year

SHOP, the giant Canadian tech company, has wavered this year. After soaring to a high of $129.53 in January, the stock crashed for four consecutive weeks, reaching a low of $89.54 after it published strong financial results. 

The data showed that Shopify’s quarterly revenue jumped by 26% in the fourth quarter to $8.9 billion. A 26% annual growth rate is a good one for a company that has been in business for many years. 

The revenue growth accelerated after the company continued adding more large companies on its platform. Some of the top firms it added in the last quarter were firms lik David’s Bridal, Aldo, GameStop, and Warner Music Group. 

Shopify’s growth also happened as more companies embraced its add-on solutions. In addition to the basic shopping tools, the company has unveiled more solutions like Shop Pay, PoS, Collabs, Promise, and Audience. 

Shopify’s gross merchandise volume jumped to over $94.46 billion last quarter, while the free cash flow jumped to $611 million. It also achieved a cumulative gross merchandise volume (GMV) of $1 trillion, a sign that demand for its solutions is rising. 

Most importantly, the management believes that the growth trajectory will continue. The guidance is that its revenue will grow at mid-twenties, while its free cash flow margin will be in the mid-teens. 

Read more: Shopify stock is a better pick than Amazon: Mark Mahaney explains why

Opportunities and challenges

The most important opportunity that Shopify stock has is that it is the biggest player in its business. Amazon ended its software services and directed its clients to Shopify a few years ago. BigCommerce, its top direct rival, has largely fallen apart, with its stock crashing by over 90% since going public. 

Shopify’s other opportunity is that its business has more room to upsell. In this, many companies start their journey looking for a software solution to launch their e-commerce sites. Over time, they use Shop Pay, its logistics tools, and other solutions. 

Analysts are upbeat about the Shopify stock price and its financials. The average estimate is that its first-quarter revenue will grow by 25% to $2.3 billion, while its annual revenue figure will be $10.93 billion. The average Shopify stock price forecast among analysts is $134.5, up from the current $101.55.

However, the company also faces some potential challenges that may affect its performance. For example, it is one of the most overvalued companies in Wall Street, a situation that has persisted since its IPO. It has a trailing and forward P/E ratio of 66, much higher than the S&P 500 average of 21.

The other challenge is that many consumer-facing businesses may face growth issues because of Donald Trump’s tariff, which may affect consumer confidence.

Read more: Shopify stock price forecast: Morgan Stanley sees a 20% upside

Shopify stock price analysis

SHOP stock price chart | Source: TradingView

The weekly chart shows that the SHOP share price has been in a strong bullish trend in the past few months. It has remained above the 50-week and 100-week Exponential Moving Averages (EMA), a sign that bulls are in control for now. 

Most importantly, the stock has formed a rising broadening wedge chart pattern. This pattern is made up of two ascending and broadening chart pattern. Therefore, the Shopify stock price will likely surge in the near term. The stock will likely retest the crucial resistance point at $130. More gains will be confirmed if it moves above that level.

The post Shopify stock price giant megaphone points to a strong surge appeared first on Invezz

AMC stock price has remained in a tight range this year as investors focus on its recent financial earnings and the Box Office outlook for the year. It was trading at $3 on Thursday, a few points above the year-to-date low of $2.80. This article explains why the AMC share price may surge by about 25% this year.

AMC business is still doing well 

Financial results released in February showed that AMC’s business did relatively well in the fourth quarter and in 2024. 

The results revealed that AMC grew its revenue and narrowed its losses, which is a welcome move for a company that has been pressured for long. 

AMC’s revenue was $1.3 billion in the fourth quarter, a big increase from the $1.1 billion that it made in the same period a year earlier. 

The company’s net loss was about $135 million, a big improvement from the $182 million it lost a year earlier. Most importantly, the adjusted EBITDA was $164.8 million, much higher than the $47.9 million it made a year earlier. 

Free cash flow is one of the most important numbers that Wall Street investors look at since it considers all the funds that remain after spending. AMC’s free cash flow rose to over $113 million, up from an outflow of $149 million.

These numbers mean that the company is doing relatively well. They also mean that it may become net profitable either this year or in 2026. 

AMC’s annual revenues came in at $4.63 billion, down from the $4.8 billion it made a year earlier. While a revenue decline is never a good thing, this one was relatively understandable for two reasons. AMC had tough comps because of the success of Barbie, Oppenheimer, and Eras Tour. Also, the large Hollywood strike in 2023 impacted its business last year. 

Box Office growth in 2025

There are chances that AMC will return to growth this year because of the planned movies. Some of the most notable movies that will come out this year are Captain America: Brave New World, Snow White, Thunderbolts, Mission Impossible, Jurassic World, The Fantastic Four, Superman, Avatar, and Zootopia. These highly popular movies will lead to higher revenues over time.

Analysts are optimistic that, barring any major development. Analysts expect that the annual revenue will be $5 billion this year and $5.38 billion in 2026. These are good numbers for a company that some investors believed would go bankrupt. 

Most notably, the company has handled its balance sheet. It has deferred most of its risky maturities to 2029 and boosted its cash reserves. This means that it may not need to raise cash again in the near term since its losses are narrowing.

This is partly the reason why analysts expect that the AMC stock price will jump in the near term. The average stock target is $3.5 from the current $3.

AMC stock price analysis

AMC stock chart by TradingView

The daily chart shows that the AMC share price has been in a strong downward trend in the past few months. It has formed a descending channel and remained below the 50-day and 25-day moving averages. 

This price action and the low daily volume could be a sign that an accumulation is going on. The Wyckoff Theory suggests that the accumulation phase is followed by the markup, one of the market’s most bullish signs. 

Such a move would see the AMC stock price jump to the next key resistance at $3.8, the highest point in February last year and 25% above the current level. A drop below the support level at $2.8 will invalidate the bullish view.

The post Here’s why AMC stock price may jump by at least 25% this year appeared first on Invezz

IAG share price has crawled back in the past six consecutive days as investors bought the dip following a 25% dip earlier this month. The stock was trading at 300p on Thursday as UK stocks stabilized following the Federal Reserve decision.

Airline stocks have lost momentum

The recent IAG share price performance mirrors that of other global airline companies that thrived in 2024. United Airlines has collapsed by over 35% from its highest level this year, meaning that it is in a deep bear market.

Similarly, American Airlines share price has dropped by over 40%, while Delta has plummeted by over 31%. The closely watched US Global JETS ETF (JETS), which tracks the biggest airline companies, has plunged by almost 18% from the year-to-date high.

IAG and other airline companies surged in 2024 as the industry stabilized and reported results that were stronger than expected. These companies are also changing their businesses to target wealthier customers and boost margins. One of the top approaches for this is to launch premium economy and other expensive seats. 

IAG reported strong numbers

The most recent results showed that the IAG business continued doing well last year, helped by its lucrative transatlantic route. 

Its annual revenue rose by 9% last year to €32.1 billion, while the operating profit surged by 22% to €4.2 billion. The profit after tax was €2.7 billion, making it one of the most profitable airlines in the industry. 

Most of this growth was mostly driven by its investment in British Airways. It has invested over 7 billion pounds in the company in the past few years in a bid to position it as a better alternative to companies like Delta and United. 

IAG’s growth was also because of capacity, which included a 6% boost in 2024. The management hopes to continue growing the capacity from Europe to North America and to Latin America. 

IAG expects that the business will continue doing well this year. It sees its revenue and margins continuing to rise. 

As a result, the company is improving its balance sheet, which has seen its net debt to EBITDA move to 1.1x, lower than 1.7x a year earlier. It hopes to continue making these improvements, by purchasing its debt.

IAG share price may benefit from its capital returns strategy. It paid €435 million in dividends last year and hopes to pay €1 billion more this year. 

Read more: IAG share price has surged: will it fly or sink in 2025?

Therefore, the IAG share price has dropped because airline stocks are highly cyclical with regular pumps and dumps. 

IAG share price analysis

IAG stock chart by TradingView 

The weekly chart shows that the IAG stock price has hit turbulence in the past few weeks. It crashed from a high of 367p in January to a low of 274p. This decline saw it move below the 23.6% Fibonacci Retracement point. Therefore, the ongoing pump is a sign that investors are simply buying the dip. 

The most likely scenario is where the IAG share price resumes the downtrend and retests the crucial support at 236p, the highest swing in June 2020. It may also drop to the 50% retracement point at 228p and then resume the uptrend. 

The post IAG share price has crashed: to get worse before rebounding appeared first on Invezz

The Shopify stock price rose on Wednesday after the Canadian company filed to change its US listing from the New York Stock Exchange (NYSE) to the Nasdaq. It moved back above $100 even though the listing change will not have an impact on its business. So, what next for the SHOP share price, and is it a good buy after forming a megaphone pattern?

Shopify stock has wavered this year

SHOP, the giant Canadian tech company, has wavered this year. After soaring to a high of $129.53 in January, the stock crashed for four consecutive weeks, reaching a low of $89.54 after it published strong financial results. 

The data showed that Shopify’s quarterly revenue jumped by 26% in the fourth quarter to $8.9 billion. A 26% annual growth rate is a good one for a company that has been in business for many years. 

The revenue growth accelerated after the company continued adding more large companies on its platform. Some of the top firms it added in the last quarter were firms lik David’s Bridal, Aldo, GameStop, and Warner Music Group. 

Shopify’s growth also happened as more companies embraced its add-on solutions. In addition to the basic shopping tools, the company has unveiled more solutions like Shop Pay, PoS, Collabs, Promise, and Audience. 

Shopify’s gross merchandise volume jumped to over $94.46 billion last quarter, while the free cash flow jumped to $611 million. It also achieved a cumulative gross merchandise volume (GMV) of $1 trillion, a sign that demand for its solutions is rising. 

Most importantly, the management believes that the growth trajectory will continue. The guidance is that its revenue will grow at mid-twenties, while its free cash flow margin will be in the mid-teens. 

Read more: Shopify stock is a better pick than Amazon: Mark Mahaney explains why

Opportunities and challenges

The most important opportunity that Shopify stock has is that it is the biggest player in its business. Amazon ended its software services and directed its clients to Shopify a few years ago. BigCommerce, its top direct rival, has largely fallen apart, with its stock crashing by over 90% since going public. 

Shopify’s other opportunity is that its business has more room to upsell. In this, many companies start their journey looking for a software solution to launch their e-commerce sites. Over time, they use Shop Pay, its logistics tools, and other solutions. 

Analysts are upbeat about the Shopify stock price and its financials. The average estimate is that its first-quarter revenue will grow by 25% to $2.3 billion, while its annual revenue figure will be $10.93 billion. The average Shopify stock price forecast among analysts is $134.5, up from the current $101.55.

However, the company also faces some potential challenges that may affect its performance. For example, it is one of the most overvalued companies in Wall Street, a situation that has persisted since its IPO. It has a trailing and forward P/E ratio of 66, much higher than the S&P 500 average of 21.

The other challenge is that many consumer-facing businesses may face growth issues because of Donald Trump’s tariff, which may affect consumer confidence.

Read more: Shopify stock price forecast: Morgan Stanley sees a 20% upside

Shopify stock price analysis

SHOP stock price chart | Source: TradingView

The weekly chart shows that the SHOP share price has been in a strong bullish trend in the past few months. It has remained above the 50-week and 100-week Exponential Moving Averages (EMA), a sign that bulls are in control for now. 

Most importantly, the stock has formed a rising broadening wedge chart pattern. This pattern is made up of two ascending and broadening chart pattern. Therefore, the Shopify stock price will likely surge in the near term. The stock will likely retest the crucial resistance point at $130. More gains will be confirmed if it moves above that level.

The post Shopify stock price giant megaphone points to a strong surge appeared first on Invezz

AMC stock price has remained in a tight range this year as investors focus on its recent financial earnings and the Box Office outlook for the year. It was trading at $3 on Thursday, a few points above the year-to-date low of $2.80. This article explains why the AMC share price may surge by about 25% this year.

AMC business is still doing well 

Financial results released in February showed that AMC’s business did relatively well in the fourth quarter and in 2024. 

The results revealed that AMC grew its revenue and narrowed its losses, which is a welcome move for a company that has been pressured for long. 

AMC’s revenue was $1.3 billion in the fourth quarter, a big increase from the $1.1 billion that it made in the same period a year earlier. 

The company’s net loss was about $135 million, a big improvement from the $182 million it lost a year earlier. Most importantly, the adjusted EBITDA was $164.8 million, much higher than the $47.9 million it made a year earlier. 

Free cash flow is one of the most important numbers that Wall Street investors look at since it considers all the funds that remain after spending. AMC’s free cash flow rose to over $113 million, up from an outflow of $149 million.

These numbers mean that the company is doing relatively well. They also mean that it may become net profitable either this year or in 2026. 

AMC’s annual revenues came in at $4.63 billion, down from the $4.8 billion it made a year earlier. While a revenue decline is never a good thing, this one was relatively understandable for two reasons. AMC had tough comps because of the success of Barbie, Oppenheimer, and Eras Tour. Also, the large Hollywood strike in 2023 impacted its business last year. 

Box Office growth in 2025

There are chances that AMC will return to growth this year because of the planned movies. Some of the most notable movies that will come out this year are Captain America: Brave New World, Snow White, Thunderbolts, Mission Impossible, Jurassic World, The Fantastic Four, Superman, Avatar, and Zootopia. These highly popular movies will lead to higher revenues over time.

Analysts are optimistic that, barring any major development. Analysts expect that the annual revenue will be $5 billion this year and $5.38 billion in 2026. These are good numbers for a company that some investors believed would go bankrupt. 

Most notably, the company has handled its balance sheet. It has deferred most of its risky maturities to 2029 and boosted its cash reserves. This means that it may not need to raise cash again in the near term since its losses are narrowing.

This is partly the reason why analysts expect that the AMC stock price will jump in the near term. The average stock target is $3.5 from the current $3.

AMC stock price analysis

AMC stock chart by TradingView

The daily chart shows that the AMC share price has been in a strong downward trend in the past few months. It has formed a descending channel and remained below the 50-day and 25-day moving averages. 

This price action and the low daily volume could be a sign that an accumulation is going on. The Wyckoff Theory suggests that the accumulation phase is followed by the markup, one of the market’s most bullish signs. 

Such a move would see the AMC stock price jump to the next key resistance at $3.8, the highest point in February last year and 25% above the current level. A drop below the support level at $2.8 will invalidate the bullish view.

The post Here’s why AMC stock price may jump by at least 25% this year appeared first on Invezz

Retail stocks are looking more attractive after a more subdued inflation data for February.

Last week, the Bureau of Labour Statistics reported the consumer price index at 0.2% for the month and 2.8% for the year.

Economists, in comparison, were at 0.3% and 2.9%, respectively.

Easing inflation tends to be a positive for retail stocks as it boosts consumer spending.

Plus, lower CPI paves the way for rate cuts that further increase the consumers’ disposable income.

That said, there are two retail stocks that famed investor Jim Cramer particularly recommends owning at current levels: Gap and Ralph Lauren.

Why is Cramer bullish on Gap stock?

Jim Cramer sees Gap shares as worth buying “as long as you don’t think the entire economy is about to fall off a cliff.”

He has immense confidence in the leadership of Gap’s new chief executive Richard Dickson, under whom, all four of the company’s brands gained market share in the latest reported quarter.

Additionally, the worldwide clothing and accessories retailer is attractive also because it’s strongly positioned to navigate the Trump tariffs.

Gap sources less than 1.0% of its products from Canada and Mexico and about 10% from China, which suggests it will succeed in keeping resilient amidst the new tariff environment. 

While the near-term may remain a bit choppy for Gap stock, the Mad Money host is convinced that loading up on it at current levels will set up investors well for the longer term.

Finally, Cramer is bullish on GAP also because it pays a rather lucrative dividend yield of 3.28% at the time of writing.

Why is Cramer bullish on Ralph Lauren stock?

Shares of Ralph Lauren have fallen more than 20% since mid-February, which Jim Cramer called a buying opportunity for long-term investors on Mad Money last week.

The famed investor is not entirely convinced that the US economy is headed for a severe recession – and against that backdrop, Ralph Lauren stock looks “darned cheap at current levels,” he added.

He acknowledged that Trump’s tariffs could impact Ralph Lauren and that some economic slowdown remains a possibility.

However, he noted that the company primarily serves high-income households, which tend to remain resilient during downturns.

Jim Cramer sees RL shares as better positioned than its peers for a comeback as the brand has succeeded in maintaining cultural relevance.

Much like GAP, Ralph Lauren is also a dividend stock that currently yields 1.50%, which makes it all the more exciting to own for those in search of an additional source of passive income.

The post Gap and Ralph Lauren: 2 retail stocks to buy after February inflation data appeared first on Invezz

IAG share price has crawled back in the past six consecutive days as investors bought the dip following a 25% dip earlier this month. The stock was trading at 300p on Thursday as UK stocks stabilized following the Federal Reserve decision.

Airline stocks have lost momentum

The recent IAG share price performance mirrors that of other global airline companies that thrived in 2024. United Airlines has collapsed by over 35% from its highest level this year, meaning that it is in a deep bear market.

Similarly, American Airlines share price has dropped by over 40%, while Delta has plummeted by over 31%. The closely watched US Global JETS ETF (JETS), which tracks the biggest airline companies, has plunged by almost 18% from the year-to-date high.

IAG and other airline companies surged in 2024 as the industry stabilized and reported results that were stronger than expected. These companies are also changing their businesses to target wealthier customers and boost margins. One of the top approaches for this is to launch premium economy and other expensive seats. 

IAG reported strong numbers

The most recent results showed that the IAG business continued doing well last year, helped by its lucrative transatlantic route. 

Its annual revenue rose by 9% last year to €32.1 billion, while the operating profit surged by 22% to €4.2 billion. The profit after tax was €2.7 billion, making it one of the most profitable airlines in the industry. 

Most of this growth was mostly driven by its investment in British Airways. It has invested over 7 billion pounds in the company in the past few years in a bid to position it as a better alternative to companies like Delta and United. 

IAG’s growth was also because of capacity, which included a 6% boost in 2024. The management hopes to continue growing the capacity from Europe to North America and to Latin America. 

IAG expects that the business will continue doing well this year. It sees its revenue and margins continuing to rise. 

As a result, the company is improving its balance sheet, which has seen its net debt to EBITDA move to 1.1x, lower than 1.7x a year earlier. It hopes to continue making these improvements, by purchasing its debt.

IAG share price may benefit from its capital returns strategy. It paid €435 million in dividends last year and hopes to pay €1 billion more this year. 

Read more: IAG share price has surged: will it fly or sink in 2025?

Therefore, the IAG share price has dropped because airline stocks are highly cyclical with regular pumps and dumps. 

IAG share price analysis

IAG stock chart by TradingView 

The weekly chart shows that the IAG stock price has hit turbulence in the past few weeks. It crashed from a high of 367p in January to a low of 274p. This decline saw it move below the 23.6% Fibonacci Retracement point. Therefore, the ongoing pump is a sign that investors are simply buying the dip. 

The most likely scenario is where the IAG share price resumes the downtrend and retests the crucial support at 236p, the highest swing in June 2020. It may also drop to the 50% retracement point at 228p and then resume the uptrend. 

The post IAG share price has crashed: to get worse before rebounding appeared first on Invezz