Original Content- Business Upside
Shares of airlines have taken a hit, as evident from the lower trading of the stocks of delta airlines after the emergence of Omicron, a new variant of coronavirus in South Africa. The rise of the new variant has unnerved investors as they struggle to gauge the economic impact. As news and contradictory information about Omicron keep flowing in, it is keeping investors on tenterhooks. But analysts of J.P.Morgan, the US investment bank, believe that investors can think of taking advantage of the sharp fall in share prices at the end of November.
Triggered by one of the most significant sell-off of the year, the stock price of Delta Airlines hit a new one-year low at $35.84 on November 27. It was not Delta alone, but other United, American, Southwest, Spirit, and JetBlue Airlines traded lower by 7% during the same time as the day before Thanksgiving Day. As expected, countries, including the US, are imposing new travel restrictions to slow Omicron. As scientists are yet to understand the South African variant, the fear of the unknown enemy is triggering fresh waves of economic uncertainty. The 7.03% loss of the airlines’ stocks comes in the back of the Transportations sector’s loss of 2.97%, while the S&P 500 gained 3.61%.
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