In-Flight Media Stocks Diverge After Years of Turbulence
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In-flight media provider Gogo Inc. has seen little recovery since its May 8 plunge of 36 percent. Meanwhile, one of its fiercest competitors -- Global Eagle Entertainment Inc. -- surged 35 percent Monday.
Shares of both companies have fallen at least 70 percent over the past five years, but Northland Securities analyst Paul Penney now sees the two moving in opposite directions. While Gogo is grappling with “deep-rooted” problems, Global Eagle is “in the early innings of a financial and operational comeback,” Penney said in a phone interview.