Paramount's Surprise Bidder

And, Spirit Airlines leadership shift.

July 02, 2024

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Today is Tuesday, July 2, 2024.

The Early Bird Index today is 75.14.

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Paramount's Surprise Bidder

With questions swirling about the future of Paramount Global (Nasdaq: PARA), the stock jumped 2.37% in after-hours trading on Monday following a takeover report.

Details: The New York Times reported that digital media mogul Barry Diller is exploring a bid to take control of Paramount, with Diller’s media company IAC (Nasdaq: IAC) signing a nondisclosure agreement as part of the talks.

Background: The development comes after Paramount nearly finalized a deal to get acquired by Skydance. Those talks ended without an agreement in June.

Stock Price: Paramount is down 29.58% this year. Most of the decline is in the last 30 days.

Final Thoughts: An acquisition could be good for Paramount investors after enduring a bad few years.

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Notables

Notable Earnings Today: MSC Industrial (NYSE: MSM), Simulations Plus (Nasdaq: SLP), Radius Recycling (Nasdaq: RDUS).

Notable IPOs Today: Eshallgo Inc. Class A Ordinary Shares (Nasdaq: EHGO), Eureka Acquisition Corp Unit (Nasdaq: EURKU).

Notable Equity Crowdfunding Campaigns Ending Today: Gemini Bottle Co. (SMBX), Feed The Mass (SMBX), Vika Living (StartEngine).

Notable Economic Events Today: JOLTs Job Openings (10:00 a.m. ET), API Weekly Crude Oil Stock (4:30 p.m. ET).

Spirit Airlines Leadership Change

Amid a terrible year for Spirit Airlines (NYSE: SAVE), the troubled low-cost carrier announced an executive leadership change Monday that caused the stock to tip up by 0.82% in after-hours trading.

Details: Aviation technology executive Fred Cromer joins as the new CFO. Cromer will begin the job on July 8 and will work closely with interim CFO Brian McMenamy.

Background: 2024 has been awful for investors of Spirit Airlines. The stock is down 78.35% this year thanks in part to the failed merger with JetBlue Airways (Nasdaq: JBLU ), which was blocked by U.S. regulators.

Early Bird’s Nest Egg Gains: Spirit’s problems go deeper than the failed merger attempt.

  • Spirit recently reported its 10th consecutive quarterly loss (ouch!).

  • The airline has a negative free cash flow of -$781 million. This is due in part to the billions it owes in debt.

  • Budget airlines are facing competitive headwinds from the big players, resulting in more discounting, price erosion, and lower sales. 

Final Thoughts: It’s tough for Spirit to operate as an independent company in this tough market. Hopefully, the new CFO can turn things around.

Polkadot’s New Ledger App

The price of the cryptocurrency Polkadot ticked up about 1% on Monday as the Polkadot platform introduced a new ledger app for users.

Final Thoughts: Polkadot’s price is down this year, including a 10% drop in the last 30 days. It’s good to see Polkadot finally have a nice day in 2024.

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The contents of Early Bird are intended for informational and entertainment purposes only. They do not constitute trade or investment recommendations and they are not financial or legal advice. Readers are encouraged to consult licensed professionals for personalized guidance regarding their financial or legal situations.