10 Worst Cruise Stocks to Buy Now According to Short Sellers

5) Mondee Holdings, Inc. (NASDAQ:MOND)

Short % of Float (As of 15 August): 8.35%

Number of Hedge Fund Holders: 2

Mondee Holdings, Inc. (NASDAQ:MOND) is a travel technology company. It has announced the launch of Mondee Travel Marketplace featuring Abhi, its AI-powered travel assistant platform focusing on the cruise booking process.

The company’s stock has seen a decline of over ~70% over the past year, and short sellers believe that this decline was mainly because of broader economic pressures and sector-specific headwinds.  Mondee Holdings, Inc. (NASDAQ:MOND) continues to face working capital constraints and a lower demand, which might continue into 3Q 2024. As a result, the company reduced its forecast for FY 2024. Short sellers believe that the challenging period, mainly because of softer demand and financial constraints, might continue in the remaining half of 2024.

However, Wall Street analysts believe that its strategic refinancing of term loans and preferred equity hints at the strong position for future market share penetration and stable revenue growth. Mondee Holdings, Inc. (NASDAQ:MOND) continues to address its capital constraints as it has extended its 2028 obligations and is focused on increased take rate offerings, like travel packages. This strategy should help the company improve profit margins in the upcoming quarters. The new capital structure is expected to fuel the company’s expansion, improve profitability, and solidify its AI leadership in travel.

Mondee Holdings, Inc. (NASDAQ:MOND)’s much-anticipated refinancing should offer financial flexibility and additional working capital. Therefore, the company might resume and accelerate its growth trajectory.

As per Insider Monkey’s 2Q 2024 database, Mondee Holdings, Inc. (NASDAQ:MOND) was included in the portfolios of 2 hedge funds, up from 1 in the preceding quarter.