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Alaska Air Group, Inc.

ALK pitch long Chris Waller, SK Lee, HK Kim

Thesis

Alaska Airlines has a strong competitive position in the U.S. airline industry, with a focus on operational efficiency and customer service. The company is expected to benefit from industry consolidation and rising travel demand, making it a compelling investment.

Did it work?

failed confidence: high

The pitch was a long thesis predicated on Alaska Airlines benefiting from industry consolidation and rising travel demand, but the stock declined 51.3% over the ~9.3 years since the pitch. With more than enough time elapsed for any reasonable investment horizon, the thesis dynamics clearly did not translate into shareholder returns — the stock lost over half its value instead of appreciating. The stated catalysts either failed to materialize or were overwhelmed by other pressures.