Jet.AI Inc (JTAI)
Fundamental Analysis
Jet AI was founded in 2018 and is headquartered in Las Vegas. Its shares are traded on the Nasdaq stock exchange.
The company operates in two segments. Software and Air Transportation.
Software is dominated by B2C CharterGPT and B2B Jet.AI platform, CharterGPT seeks to optimize private flight booking and related services. The company uses AI for machine learning. Jet.AI is software for air transportation providers to increase ridership and turnover.
In the air transportation segment, the company provides private aircraft sales and purchase services, as well as private aircraft management.
The company has lost 98% of its value over the past 12 months. Since its IPO, the company has lost 99.72% of its value. The subscription was at a price of $1,478 and the current price is below $5 per share. Except for December 2023, the company has not seen its stock rise, only fall.
EPS is -$97 (minus ninety-seven dollars)
Average volume is above 200,000 shares traded per day.
Jet.AI had 2023 revenue of $12.2 million with a loss of $12.6 million.
Results
For 3Q 2024, the company had:
An increase in sales of $0.5 million to $3.9 million. The company was able to acquire two additional customers to manage its aircraft.
Bookings through CharterGPT software increased by USD 0.5 million to USD 2.4 million.
Costs increased to $3.9 million primarily due to variable costs increasing with higher aircraft utilization.
Overall, the company reported a loss of $2.9 million, down from the previous quarters due to higher revenues from its operations.
Technical analysis
The company is in a downtrend according to the moving averages. The H4 chart provides a better overview of the current situation. However, it is a constant price decline without major pullbacks.
The RSI is alternately in the oversold zone and the neutral zone.
Conclusion
Jet.AI proves that even if you put AI (artificial intelligence) in your company name, it doesn’t necessarily mean that your product and company will be profitable. The company operates in the highly competitive private jet segment, which is inherently a very small market with a narrow focus on affluent clientele.
Losing 99% of share value is a solid performance. Jet.AI has been burning capital every year of its operation.
While the quarterly results bring a minor recovery, the company still posted another loss.
Technical analysis points to a decline.
However, the current low share price may be a lure for some investors. But any investment must be well considered by any investor, whether buying or selling, in such a fragile company with uncertain results.