Southwest Airlines Blackout
By Fri, Jul 9, 2021
Hey Scoopers,
Although the markets set records in the last few sessions, they ended in the negative on Thursday. — More on that in the “Overall Market” section.
Beyond the overall market, a cloud service company turned a major service outage into a successful outage management case. Meanwhile, a cruise line company is facing longer travelling restrictions as countries declare a new emergency state. — More on that in the “What’s Up?” and “What’s Down?” sections.
By the way, Southwest Airlines (LUV) had to cancel hundreds of flights last month. — More on that in the “Water Cooler” section.
But, first, here is a recap of what happened in the market yesterday:
- U.S. markets: The stock market ended in the red zone on Thursday. Scroll down to the “Overall Market” section to read more.
- Cryptocurrency: Bitcoin‘s price decreased to $33K per coin.
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Nothing Lasts Forever
The stock market ended in the red zone on Thursday.
After multiple successive record-setting sessions, the markets pulled back as growth concerns appeared among investors. The new concerns were raised after Tokyo announced a emergency state declaration amid the Covid-19 delta variant spread. The declaration came only few days before the start of the Olympic games and increased uncertainties about the world economic recovery.
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Turned Into a Success Case
So, what happened?
Shares of Fastly (Ticker: FSLY) were up by more than 1% on Thursday. Although barely increasing its value yesterday, the company’s stock soared 26% in June. Despite the major outage last month, the cloud computing services provider turned the event into an effective outage management case. In Fastly’s perspective, service quality matters. However, the quick response to unexpected errors matters even more, and investors seem to be noticing it.
America’s Top Stock Cop Warns: “Do This BEFORE You Get the Vaccine.”
He predicted the coronavirus crash a month early…
He called the bottom of the crash too, on March 16.
Now, America’s top “stock cop” has an urgent warning for all Americans:
“Do this BEFORE you get the vaccine.”
Cruise Lines’ Troubles Continue
So what happened?
Shares of Carnival (Ticker: CCL) were down by almost 2% on Thursday. Although vaccination efforts around the world have shown results, the COVID-19 delta variant spread could delay even more the back-to-normal life. After Japan’s regulators discussed a possible declaration of emergency in Tokyo, the spread started raising doubts about the rebound of the travel industry from the pandemic. Even though cruise companies like Carnival are willing to comply with countries’ safety measures, it seems that the travel industry is still experiencing headaches related to the pandemic.
Southwest Airlines Blackout
So what happened?
In July, Southwest Airlines (Ticker: LUV) suffered its second computer glitch in just 24 hours. Although the company already fixed the issues, the series of glitches caused more than 500 flight cancellations and delays. According to Southwest, its internal investigation suggested the two problems didn’t appear to be related. Apparently, an issue with a weather data supplier triggered both problems leading to hundreds of delayed flights. Moreover, analysts believe the surge in customers along with employee reductions are overloading many airlines’ systems.
Although Southwest didn’t disclose how much the issues would cost to the company, technology issues had costed Delta Airlines (Ticker: DAL) more than $150 million in 2016. Airlines and airline investors continue to have a bad time.
If you have any questions, or suggestions let us know by emailing us at members@tradestocks.com. We look forward to hearing from you.
About the Author
Felipe Nebesnyj is an Economics student who is passionate about the stock market and investing in the market. Originally from Brazil, he is working and studying in the U.S. and started learning about and researching the stock market at 16. Before joining Stock Card, Felipe worked on multiple stock market research projects that gave him the necessary knowledge and confidence to put into his stock market analyst career at Stock Card. Last but not least, he is an excellent violinist and enjoys video games.
