Why United Airlines Holdings Inc. (UAL) Went Down On Wednesday?

We recently published a list of Today’s 10 Worst-Performing Stocks. In this article, we are going to take a look at where United Airlines Holdings Inc. (NASDAQ:UAL) stands against other worst-performing stocks.

Wall Street’s main indices finished mixed on Wednesday, with the Dow Jones emerging as the sole decliner as investors digested more news of tariff threats from President Donald Trump.

The Dow Jones dropped by 0.20 percent. In contrast, the S&P 500 and Nasdaq clocked in gains of 0.49 percent and 1.22 percent, respectively.

Ten companies mirrored a mostly pessimistic trading—four of which were Chinese stocks—as traders sold off to minimize risks from the potential impact of the US’ trade war with China.

In this article, we have identified the 10 worst performers on Wednesday and detailed the reasons behind their performance.

To come up with the list, we considered only the stocks with at least $2 billion in market capitalization and $5 million in trading volume.

Why United Airlines Holdings Inc. (UAL) Went Down On Wednesday?

A bird’s eye view of a large commercial jetliner taking off from an airport runway.

United Airlines Holdings Inc. (NASDAQ:UAL)

United Airlines extended its losing streak for a fifth straight day on Wednesday, shedding another 4.73 percent to finish at $72.46 apiece, as the company continued to bear the brunt of a pessimistic sentiment on the travel and tourism industry.

UAL, alongside its peers, suffered from sell-offs as a result of the ongoing trade tensions between the United States and its trading partners, including Canada.

At a conference, UAL Chief Executive Officer Scott Kirby said UAL is set to reduce its flying capacity with the retirement of 21 aircraft and the reduction of flights in markets that used to have high traffic, including Canada.

“Where you see people cutting is the places they’ve lost money,” and where they are not the number one carrier, Kirby said.

“From an industry level, I expect you will see modest supply changes in the short term. By the time we get to August, every analyst will be writing about capacity cuts.”

Overall, UAL ranks 9th on our list of worst-performing stocks. While we acknowledge the potential of UAL 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 time frame. If you are looking for an AI stock that is more promising than UAL but trades at less than 5 times its earnings, check out our report about the cheapest AI stock.

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