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Alaska's Big Hawaiian Takeover

Alaska's Big Hawaiian Takeover

And, Bitcoin hits 2023 high of $40,000.

Photo by Josh Withers on Unsplash

Today is Monday, December 4, 2023.

The Early Bird Index today is 62.00.

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Alaska's Big Hawaiian Takeover

Alaska Airlines Group (NYSE: ALK) expanded its reach by acquiring Hawaiian Holdings (Nasdaq: HA) for $1.9 billion on Sunday.

Details: The transaction, which will close in 12 to 18 months, is for all cash for $18 per share (a good deal for Hawaiian Airlines shareholders). Both Alaska Airlines and Hawaiian Airlines will continue to operate as separate brands, but the headquarters will be based in Seattle under the leadership of Alaska Airlines. Honolulu will become a key Alaska Airlines hub.

Quote: “This combination is an exciting next step in our collective journey to provide a better travel experience for our guests and expand options for West Coast and Hawai'i travelers.” - Ben Minicucci, Alaska Airlines CEO.

Background: 2023 has been tough for the airline industry. Higher costs caused higher ticket prices, which has been awful for demand. Earnings for both Alaska Airlines and Hawaiian Airlines have been pitiful as well.

Stock Price: Alaska Airlines is down 5% in 2023, but up nearly 21% in the last 30 days. Hawaiian Airlines is down 50% this year, but up 13% in the last 30 days.

Final Thoughts: It’s a great cash deal for Hawaiian Airlines investors. For Alaska Airlines investors, the hope is that the company grows its revenue over time with this deal.

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Notables

Notable Earnings Today: Science Applications (NYSE: SAIC), GitLab (Nasdaq: GTLB), Fusion Fuel Green (Nasdaq: HTOO), Joann (Nasdaq: JOAN), Culp (NYSE: CULP).

Notable IPOs Today: Global Lights Acquisition Corp Ordinary Shares (Nasdaq: GLAC), Aimei Health Technology Co., Ltd Unit (Nasdaq: AFJKU), Vert Global Sustainable Real Estate ETF (Nasdaq: VGSR).

Notable Equity Crowdfunding Campaigns Ending Today: Aurora Market (SMBX), HoldOn Bags (Wefunder), Oak & Eden Whiskey (Wefunder), Tres Jardines (Honeycomb), Recovering Bro (Netcapital), Manos Sagrados (Honeycomb), Manos Sagrados (Netcapital), Brewability (Honeycomb).

Notable Economic Events Today: Factory Orders (10:00 a.m. ET).

Bitcoin Hits 2023 High of $40,000

Photo by Yiğit Ali Atasoy on Unsplash

The price of Bitcoin jumped 3% to $40,000 on Sunday, its highest level in 19 months.

Price: After an awful 2022, Bitcoin is up 145% in 2023. In the past month, Bitcoin is up 16% and continuing to rise.

Powering the Story: There’s an abundance of optimism surrounding Bitcoin (and cryptocurrency in general) in late 2023. Excitement is building for the eventual approval of a spot Bitcoin ETF (exchange-traded fund) in the U.S., which will make it easier for traditional investors to get direct exposure to Bitcoin. And interest rates might also decline in the next year, making risky investments (such as crypto) a better bet for investors.

Final Thoughts: It’s too early to say if this is the start of a new bull run for Bitcoin or just a mirage, but $40,000 is still an important achievement for Bitcoin in 2023.

Toyota Shows Future EV Models

On Sunday, Toyota Motor (NYSE: TM) previewed a new battery electric model for the European market in 2025, with plans to roll out six dedicated electric models by 2026.

Final Thoughts: Toyota is up 36% this year. Despite a slow market for EVs, Toyota is not giving up.