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Southwest's "Unprecedented" Move
Plus, Solana’s bad Presidents’ Day.
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Today is Tuesday, February 18, 2025.
The Early Bird Index today is 83.81
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Southwest's "Unprecedented" Move
Southwest Airlines (NYSE: LUV) announced its first-ever mass layoffs on Monday, with plans to cut 15% of its corporate workforce.
Details: The company's plan to reduce spending will impact over 1,700 employees, including some senior leaders.
Southwest expects partial 2025 savings to be about $210 million, excluding severance.
Quote: “This decision is unprecedented in our 53-year history, and change requires that we make difficult decisions. We are at a pivotal moment.” - CEO Bob Jordan.
Early Bird’s Nest Egg Gains: Southwest has faced significant challenges over the past year. Competitors have introduced fare segmentation strategies (e.g., basic economy options), drawing price-sensitive travelers away from Southwest's no-frills model.
Final Thoughts: The stock is down about 10% in the last 12 months.
Notables
Notable Earnings Today: Arista Networks (NYSE: ANET), Occidental Petroleum (NYSE: OXY), Toll Brothers (NYSE: TOL), Medtronic (NYSE: MDT), Bumble (Nasdaq: BMBL), Devon Energy (NYSE: DVN), La-Z-Boy (NYSE: LZB), Cadence Design (Nasdaq: CDNS), International Flavors & Fragrances (NYSE: IFF), GeneDx (Nasdaq: WGS), Halozyme Therapeutics (Nasdaq: HALO), Fluor (NYSE: FLR), Matador Resources (NYSE: MTDR), Baidu (Nasdaq: BIDU), Watsco (NYSE: WSO), Celanese (NYSE: CE), Sapiens International (NYSE: SPNS), Expeditors International of Washington (NYSE: EXPD), Allegion (NYSE: ALLE), Andersons (Nasdaq: ANDE), Axsome Therapeutics (Nasdaq: AXSM), Blackbaud (Nasdaq: BLKB), Chemours (NYSE: CC), Community Health (NYSE: CYH), Comstock (NYSE: CRK), CoStar Group (Nasdaq: CSGP), CVR Energy (NYSE: CVI), Entergy (NYSE: ETR), EQT Corp. (NYSE: EQT), Franklin Electric (Nasdaq: FELE), Genuine Parts (NYSE: GPC), Hillman Solutions (Nasdaq: HLMN), Ingevity (NYSE: NGVT), Innospec (Nasdaq: IOSP), James Hardie (NYSE: JHX), NeoGenomics (Nasdaq: NEO), Penumbra (NYSE: PEN), Perdoceo Education (Nasdaq: PRDO), RB Global (NYSE: RBA), Rush Enterprises (Nasdaq: RUSHA), Select Water Solutions (NYSE: WTTR), Shift4 Payments (NYSE: FOUR), Sonoco Products (NYSE: SON), Starbulk (Nasdaq: SBLK), TRI Pointe Homes (NYSE: TPH), Unisys (NYSE: UIS), Valmont Industries (NYSE: VMI), Visteon (Nasdaq: VC), Vulcan Materials (NYSE: VMC), Waystar Holding (Nasdaq: WAY).
Notable IPOs Today: Cycurion, Inc. Common Stock (Nasdaq: CYCU), Acuren Corporation (NYSE American: TIC).
Notable Equity Crowdfunding Campaigns Ending Today: FreeJac Nation (Honeycomb), The Kraken’s Cup (Honeycomb), Mate Maker (StartEngine).
Notable Economic Events Today: NY Empire State Manufacturing Index (8:30 a.m. ET), TIC Net Long-Term Transactions (4:00 p.m. ET).
Solana’s Bad Presidents’ Day
The price of the cryptocurrency Solana fell by about 6% on Monday, which was Presidents’ Day, as activity on the Solana network declined.
Details: The buzz around potential Solana-related ETFs (exchange-traded funds) has diminished recently. In the futures market, Cointelegraph said more traders are currently betting on the price decreasing than those betting on it increasing.
Final Thoughts: Solana has lost about a third of its price in the last 30 days.
Conagra Brands Faces Customer Service Problems
Conagra Brands (NYSE: CAG) lowered its full-year profit forecast on Monday after experiencing “customer service interruptions” due to supply issues on some products.
Final Thoughts: The stock is down about 11% in the last 12 months.
Trends to Watch
Investor Confidence Shaken: Libra memecoin collapse is 'incredibly damaging to crypto as a whole' says Redstone COO (The Block)
Still Declining: Ether Rally Turns Into Crypto Market Slide With Bitcoin Slipping Below $96K (CoinDesk)
Consumer Spending Next Steps: With Falling U.S. Sales, Companies Are Trying to Hit the Sweet Spot for Prices (Wall Street Journal)
Painful Times: From tariffs to DOGE, what companies are saying about the impact of MAGA policies (CNBC)
The Oracle of Omaha: Warren Buffett Is Out of Step With Markets. Berkshire Hathaway Keeps Selling Stocks. (Barron’s)
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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.