America's "Favorite" Airline Is Shutting Down (Kinda)

Hiya! Hope you had a wonderful week. Mine was pretty slow, but I’m excited about Thanksgiving this upcoming week. Reply to this email and let me know 1 thing you are thankful for…

In Today’s (14th) Edition of “Element, by Arsh“ -

• Spirit Airlines files for Chapter 11 Bankruptcy…

• Nvidia, Snowflake, Target Report Earnings…

• Crypto Rises After SEC Chair Resigns…

AIRLINES

Spirit Airlines Files For Chapter 11 Bankruptcy…

A Newly Bankrupt Airline. Spirit is the newest airline to go bankrupt, but its history is a lot more fascinating than its relatively quick downfall. Like with most bankruptcies, Spirit too did not have enough money to pay back its debts. The airline owes almost $7.5 Billion and has $0.84 Billion in cash. If we do simple math on those numbers, we can see that Spirit cannot pay back its debts, especially the $1.1 Billion that is due next year. In addition, Spirit has been losing almost $100 Million every month. So, unless Spirit won a massive lottery, it would have to completely stop its operations by mid-2025! Chapter 11 Bankruptcy saves a company from that. Let me explain.

Chapter 11 Bankruptcy. This type of bankruptcy allows the company to continue operating but if the company doesn’t have the cash to pay its debts, the company’s assets are sold to pay for those. In Spirit’s case, that would be its multiple aircraft and other assets (Office space, stationery like pen and paper, etc.). If Spirit does sell its planes and other things needed for operations, you would definitely see less of those bright yellow-colored airplanes in the sky.

JetBlue & Spirit. If you have been following the US airline industry, you might have heard that JetBlue (another Low-Cost Airline) was planning to acquire Spirit. This deal would’ve saved Spirit from bankruptcy and allowed JetBlue access to a lot of other airports. However, this deal was overturned by a judge citing antitrust concerns.

If this still sounds complicated, that’s because it is. You can read this article to learn more about Spirit Airlines’ bankruptcy

EARNING REPORTS

Snowflake Impresses, Nvidia Was Mediocre, Target Disappoints…

Snowflake’s Earnings Report. Snowflake is a data analytics software company that is sometimes seen as a direct competitor to Palantir. Nevertheless, Snowflake reported earnings on Wednesday, and the stock rose over 30%. The company reported a “triple beat“ - Beat the expectations for revenue, earnings per share (EPS) and gave extremely positive guidance for future results. Read More Here.

Nvidia’s Earnings Report. The showstopper of this week’s earning reports was Nvidia. While the numbers posted by the company were mindboggling, the market did not appreciate it as much. The stock was down 2% after it reported earnings, indicating that all of this growth was already priced into the stock price. Read More Here

Target’s Earnings Report. Target had one of its worst days on the stock market after the company reported earnings. The stock of the retail chain dropped over 20% as the company posted a “triple miss“ - Missed the expectations on Revenue, Earnings Per Share (EPS) and gave guidance of poorer performance in the next year. Read More Here

CRYPTO

Crypto Bros Are Lovin’ It…

Trump-Pump. If you haven’t heard about or seen “Trump-Pump“ yet, you probably don’t spend much time on social media. Nevertheless, “Trump-Pump“ refers to the “pump“ in the stock prices and cryptocurrencies after Trump was elected as the 47th President of the US. Trump has been very vocal about his decision to reduce the corporate tax on companies and his openness towards cryptocurrencies has sent stocks and cryptocurrencies flying.

Bitcoin, Ethereum & Crypto. Bitcoin has gained almost 50% since November 5. Ethereum has been slower but has still given returns of over 40% in the same time. However, “altcoins” like Dogecoin, Shiba Inu, Solana, Ada, and others have been on a tear. Some even tripled their investment in less than a month. It’s wild but it’s the reality. However, everyone is asking the question - “How long will this last?“

Nobody knows the answer to that so please do not invest just because someone on the internet is saying that something will 100x in 1 year or something unrealistic. Always do your own due diligence, because the person “forcing“ you to buy something also doesn’t know anything 😃