American Airlines (AAL) is hoping that a deal with Elon Musk’s SpaceX can get its stock winging higher.
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New trading tool for AMZN bullsThe world’s largest carrier is reportedly planning a number of inflight perks as it tries to attract wealthy travelers and sell more premium seats on its flights. American Airlines is said to be in discussions with Elon Musk’s SpaceX about providing in-flight Wi-Fi internet service on its aircraft.
Privately held SpaceX is a commercial space technology company that operates the Starlink satellite system that provides wireless internet service here on Earth. American Airlines is hoping that SpaceX can equip its flights with WiFi internet as it looks to better compete against rivals Delta Air Lines (DAL) and United Airlines (UAL), both of which already offer free internet to their customers.
American Airlines Revival?
Reports say American Airlines is also negotiating with technology giant Amazon (AMZN) about providing inflight content on its planes, including Amazon Prime videos and music. The talks come as American Airlines tries to win back customers and boost its share price. AAL stock has declined 53% in the last five years, including a 30% drop so far this year.
A potential deal with SpaceX comes as Elon Musk prepares to take the company public this year in what is expected to be the biggest initial public offering (IPO) on record. SpaceX is looking to raise $75 billion at a valuation of $1.75 trillion, in what’s being called a blockbuster IPO.
Is AAL Stock a Buy?
American Airlines’ stock has a consensus Moderate Buy rating among 16 Wall Street analysts. That rating is based on seven Buy, eight Hold, and one Sell recommendations issued in the last three months. The average AAL price target of $15.84 implies 50.36% upside from current levels.
