Goldman Sachs Penny Stocks: Top 12 Stock Picks

3. JetBlue Airways Corporation (NASDAQ:JBLU)

Goldman Sachs’s Q1 2025 Stake: $23,085,139

Share Price as of July 3: $4.47

Number of Hedge Fund Investors In Q1 2025: 27

JetBlue Airways Corporation (NASDAQ:JBLU) is one of Goldman Sachs’ top penny stock picks. On June 30, the U.S. Supreme Court declined to hear American Airlines Group Inc.’s (NASDAQ:AAL) appeal of a lower court ruling that found its Northeast Alliance with JetBlue violated antitrust law. The decision effectively upheld the decision to block the partnership.

Announced in July 2020 and approved by the U.S. Department of Transportation in January 2021, the Northeast Alliance enabled American Airlines and JetBlue to coordinate flight schedules, share routes, and pool revenue. The partnership would also allow the two airlines to offer reciprocal loyalty program benefits for flights to and from New York City, Newark Liberty International Airport, and Boston’s Logan International Airport. The stated goal of the alliance was to enhance competition with major carriers, such as United Airlines Holdings Inc. (NASDAQ:UAL) and Delta Air Lines Inc. (NYSE:DAL).

In September 2021, the U.S. Department of Justice (DOJ) filed a civil antitrust lawsuit, alleging that the alliance had violated antitrust laws. The DOJ argued that the partnership eliminated incentives for American Airlines to lower prices to compete with JetBlue, a historically disruptive rival known for lower fares. The DOJ won the case in May 2023, and the appeal was dismissed in November 2024.

JetBlue exited the alliance in 2023, despite American Airlines’ appeals, as it was eyeing a $3.8 billion acquisition of Spirit Airlines, which was also blocked by the DOJ in 2024. JetBlue did not join American Airlines in the Supreme Court appeal.

JetBlue Airways Corporation (NASDAQ:JBLU) is an American low-cost airline. It provides non-stop passenger flights across the United States, the Caribbean, Latin America, and transatlantic routes. The carrier has major hubs in New York, Boston, Fort Lauderdale, Orlando, and Los Angeles.