Motley Fool Money Costco Cracks Down
Jun 28, 2023
Investment analysts Bill Barker, focusing on airlines and consumer goods, and Jason Moser, specializing in banking and finance, share their insights. They discuss Delta Airlines' optimistic profit outlook and General Mills' struggles with pricing power. Barker reveals how Costco is tightening membership policies to combat free riding, ensuring profitability. Moser analyzes regional banks' competition against tech giants like Apple in the consumer finance space, highlighting the evolving dynamics of the banking sector.
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Episode notes
Delta's Rebound
- Delta's investor day highlighted a travel rebound, boosting earnings and free cash flow guidance.
- While consumer debt contributes, investors focus on the positive travel recovery.
Premium Seat Rebound
- Premium seat demand rebounded, contradicting hybrid work model predictions.
- Business travel is growing, but full recovery depends on shifting corporate habits.
Airline Investing
- Invest in airlines when their outlook appears bleakest, anticipating cyclical upswings.
- Historically, airlines have been risky investments due to bankruptcies and cyclicality.