Why American Airlines Group Inc. (AAL) Went Down on Monday

We recently published an article titled These 10 Companies Led Monday’s Downturn. In this article, we are going to take a look at where American Airlines Group Inc. (NASDAQ:AAL) stands against the other stocks.

Wall Street’s major indices kicked off the trading on a positive note, all finishing in the green territory, as investors brushed off fears of growing global trade tensions.

The Dow Jones rose by 0.38 percent, the S&P 500 grew 0.67 percent, while the Nasdaq rallied 0.98 percent.

However, 10 companies defied a broader market optimism, mostly due to a series of stock rating downgrades from investment research companies on the back of poor earnings guidance and dismal earnings performance.

To come up with Monday’s worst performers, we considered only the stocks with at least $2 billion in market capitalization and $5 million in daily trading volume.

A passenger jet taking off, representing the company’s commitment to air transportation services.

American Airlines Group Inc. (NASDAQ:AAL)

American Airlines Group Inc. dropped 3.20 percent on Monday to finish at $16.62 apiece as investor sentiment was dampened by news of a bomb threat that caused significant delays to one of its flights last week.

The incident on Friday involved AAL flight 2863 set to leave Austin, Texas, which was disrupted for four hours after a young man renamed a WiFi hotspot to “there is a bomb on the flight.”

After no passenger admitted to the wrongdoing, police ordered everybody to deplane for re-screening.

The flight was cleared for takeoff after a few hours, but investors still reacted negatively to the news, selling off positions at the beginning of the week to flock to safer investments, especially as airline stocks are known to be highly sensitive to news related to safety and security issues.

Overall AAL ranks 9th on our list of Monday’s worst performers. While we acknowledge the potential of AAL as an investment, our conviction lies in the belief that some AI stocks hold greater promise for delivering higher returns and doing so within a shorter timeframe. If you are looking for an AI stock that is as promising as AAL but that trades at less than 5 times its earnings, check out our report about the cheapest AI stock.

READ NEXT: 20 Best AI Stocks To Buy Now and Complete List of 59 AI Companies Under $2 Billion in Market Cap.

Disclosure: None. This article is originally published at Insider Monkey.