Is American Airlines Stock a Buy?
American Airlines Group (NASDAQ: AAL) and other airlines have been hit hard by the COVID-19 pandemic, with travel demand reduced to a trickle. American lost $2.2 billion in the first quarter and expects second-quarter results to be worse.
The pandemic has brought to a sudden end a decade-long period of expansion by the airlines and has raised questions about the industry's long-term future. The outlook is so bleak that Warren Buffett, who famously preaches investors should be greedy when others are fearful, joined the stampede heading for the exits by liquidating Berkshire Hathaway's massive stakes in American and other airlines.
Shares of American have lost 65% of their value year to date. As dangerous as it has been historically to go against Buffett, the stock is almost certainly set up to go higher in the quarters to come if the company is able to survive the pandemic crisis. The question is, will it survive?
Source Fool.com
