As one of the largest airlines in the United States, Southwest Airlines has long been a household name in the travel industry. However, recent reports suggest that the company is struggling to maintain its position in the market. Despite efforts to improve its operations and customer service, Southwest Airlines seems to be continuing its downward spiral.

Friday’s Movers:

• Netflix Inc (NFLX) was down 21.79% as new subscriber numbers were weaker than expected resulting in most of the Wall Street analysts cutting their rating.
• Coinbase Global Inc (COIN) was down 13.38% as Russia’s central bank proposed a ban on cryptocurrencies.
• Peloton Interactive Inc (PTON) was up 11.73% as its collapse starts to talk of a possible acquisition from Apple, Nike and Amazon
• Nikola Corporation (NKLA) was down 8.64% as investors are shifting from high-multiple stocks to value stocks following concerns of supply issues of semiconductors.

Earnings Due:

Stocks to watch:

Southwest Airlines (LUV)

Airline stocks are on the decline prior to earnings being released and the 5G sentiment that came into play last week. American Airlines and Delta Airlines have been selling off at a dramatic rate as it was announced that the 5G towers near airports have interference on the older aeroplane instruments.

With FOMC due this week, as an expectation of a possible rise in interest rates, there might very well be more downside on the way as the tightening of the consumer pockets might lead to flight cancellations.

Earnings are due for release on the 27th of January, with earnings expected to be slightly positive in comparison to last quarter’s negative earnings. Given a miss on EPS, there should be a more substantial downside on the way.

Technically the chart is lining up for a good move to the downside as it held below the 200-day moving average and broke through the 20 and 50-day moving averages in the latter part of last week. 

We should see a continuation of this downward momentum carried through to $37.24.

Read More: Nasdaq Hits The Breaks & Airbnb Set To Rally

Final Thoughts on Southwest Airways

In conclusion, Southwest Airlines' downward spiral appears to be continuing despite the company's efforts to improve its operations and customer service. The airline faces a number of challenges including increased competition, changing industry dynamics, and internal management issues.

While Southwest has a loyal customer base and a strong brand, it will need to address these issues in order to stay competitive in the long term. As the travel industry continues to evolve, it remains to be seen how Southwest and other airlines will adapt to new trends and challenges. Interested in our daily updates? Follow our blog today!