Why JetBlue Airways Corp. (JBLU) Crashed on Monday

We recently compiled a list of the The 10 Worst-Performing Stocks on Monday. In this article, we are going to take a look at where JetBlue Airways Corp. (NASDAQ:JBLU) stands against the other stocks.

Ten companies kicked off this week’s trading with significant losses, mirroring a wider market pessimism over growing trade tensions.

The declines came following the US imposition of additional tariffs on goods from Canada, Mexico, and China, and signals of potential retaliation of taxes on US goods.

On Monday, the Dow Jones lost another 0.28 percent, while the S&P 500 and the Nasdaq Composite both registered steep declines of 0.76 percent and 1.20 percent, respectively. The slump came following President Donald Trump’s announcements that he would slap a 25-percent tariff on Canadian and Mexican goods, while a special 60-percent rate would be taxed on Chinese products.

Our list of Monday’s top losers only considered the companies with at least $2 billion in market capitalization and $5 million in daily trading volume.

A commercial jetliner at an airport gate with passengers waiting in the background.

JetBlue Airways Corp. (NASDAQ:JBLU)

JetBlue Airways Corp. (NASDAQ:JBLU) shares fell 8.21 percent on Monday, closing at $6.04, amid growing uncertainty over its business prospects. The decline followed continued denials from United Airlines regarding rumors of merger talks with JetBlue.

The speculation originated from a social media post by a well-known aviation insider, who has a solid track record of breaking major stories in the industry. According to the social media post citing sources privy to the matter, United Airlines is reportedly setting its sights on JetBlue, although it remained unclear whether the discussions were about a potential merger or an acquisition of assets. United Airlines dismissed those rumors in a filing with the SEC.

In addition, JetBlue traded lower in line with an overall decline in US airline stocks on the back of higher oil prices following President Donald Trump’s hefty tariffs on a range of imports, including crude from Canada and Mexico, threatening higher costs for American consumers.

The US gets most of its oil imports from Canada, as well as about 500,000 barrels a day from Mexico.

Overall JBLU ranks 3rd on our list list of the worst performing stocks on Monday. While we acknowledge the potential of JBLU as an investment, our conviction lies in the belief that 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 more promising than JBLU 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.