That is my prediction. $5 Billion in debt, revenues not even covering expenses, losing customers, business model just is not working. Oh but executives will be getting big bonuses.
24 replies (most recent on top)
Yes, it is true.
Total management failure
As formal employee of Sabre. I am so sad to see Sabre go down like this. Sabre stock now become penny stock (from $27 down to $2an). I hope Sabre will survive. If AA quit from Sabre, sabre will bo gone ! Sabre need taking care his customer!
Wouldn't DEI hiring be illegal employment discrimination?
Just like the Democratic Party. Run Sabre into the ground with DEI hires, pinch the little man while management lives high on the big fat hog in their elitist bubble.
The leaders won't declare bankruptcy. They own too much stock and get paid too much. They will squeeze the Sabre golden goose until it's dead.
Sabre is listed in the article below as one of 3 companies that might not survive 2024.
https://investorplace.com/2023/12/warning-signs-3-companies-that-might-not-survive-2024/?mod=mw_quote_news
"Sabre (SABR)
The companies that made my list had three things going against them: 1) high total debt to earnings before interest, taxes, depreciation and amortization (EBITDA), 2) a low return on assets and 3) an Altman Z-Score below 1.81 — a sign the company could file for bankruptcy over the next 24 months.
According to Morningstar, one of the largest travel booking companies by volume has a total debt of $4.82 billion, 582x its EBITDA of $8.28 million, a return on assets of -12.52% and an Altman Z-Score of -0.43.
In 2015, Sabre (NASDAQ:SABR) stock traded around $30, 7x higher than where it currently trades.
Through the first nine months of 2023, Sabre generated a non-GAAP loss of $135.4 million, down from a $254.4 million loss a year earlier, on $2.2 billion in revenue.
The bulls will point to the fact its adjusted EBITDA margin was 10.9%, 750 basis points higher than a year ago, a sign the business is coming around.
But is it?
Its interest expense in the third quarter was $119.4 million, 55% higher than Q3 2022. On an annualized basis, that’s $478 million, 62% higher than its interest expense in 2022.
That’s a huge mountain to overcome."
The stock will come back down again. It's not like Sabre makes a profit yet and probably won't until at least Q2 24. Even then, that profit won't be sustainable because you cannot sail a ship with a skeleton crew for long. Employees will leave. Customers will leave. The debt will remain. Stock price will fall.
Because of the FED:
https://www.cnbc.com/2023/12/13/fed-interest-rate-decision-december-2023.html
"Along with the decision to stay on hold, committee members penciled in at least three rate cuts in 2024, assuming quarter percentage point increments. That’s less than what the market had been pricing, but more aggressive than what officials had previously indicated. "
Because of FED:
https://www.cnbc.com/2023/12/13/fed-interest-rate-decision-december-2023.html
"Along with the decision to stay on hold, committee members penciled in at least three rate cuts in 2024, assuming quarter percentage point increments. That’s less than what the market had been pricing, but more aggressive than what officials had previously indicated. "
Stock climbing like a rocket, Why???
nope. Have faith and do your job well.
Loser post? LOL. Read and take action. You will be glad you did in 1-2 years when company releases a PR titles “Sabre evaluating financial alternatives” then decides BK is the best option as no way they can afford to EVER pay $5 billion.
Loser post. Go away loser.
Please short the stock if you think company goes to 0; post your W and be on your way.
Fun fact, nobody cares what you think on how things - should have been or how they are or what it will be.
re: @1cwd+1pTicb0x
| Former disgruntled employee who are mad that they were layoff..
firstly, a laid off employee has every right to be mad. when you accept a job with a company, it is not unreasonable to expect that you and the company would continue to maintain a mutually beneficial relationship in the foreseeable future. if management drives the proverbial car off the road which then forces it to unilaterally terminate that relationship, you would be forgiven for not being a happy camper at all.
secondly, you seem to be implying that the post was done out of malice. on the contrary, judging by the fierce loyalty and camaraderie that working at sabre seemed to engender, i would say that OP was lamenting the loss of a once-well-regarded work environment rather gloating like a jilted lover. if you ask me, people come visit this site and make comments out of nostalgia, not schadenfreude
Former Yes, Disgruntled No Way, however Mad that once great org is in such a tailspin. I was proud of being a Sabre Teammate. But Sad now of what the future is looking like for a former employer…
Former disgruntled employee who are mad that they were layoff..
Does anyone know if they have retained outside counsel with a significant bankruptcy practice?
Look at this: https://www.researchgate.net/figure/The-probability-of-bankruptcy-depending-on-the-credit-rating-10_tbl1_332148757
And this:
https://disclosure.spglobal.com/ratings/en/regulatory/article/-/view/type/HTML/id/2919788
And this:
https://www.moodys.com/credit-ratings/Sabre-Holdings-Corporation-credit-rating-820143167?cy=southafrica
Also, check this: https://x.com/Mayhem4Markets/status/1726804692968341903?s=20
Have fun staying poor.
Macroaxis says there's a 52% chance.
https://www.macroaxis.com/invest/ratio/SABR/Probability-Of-Bankruptcy#:~:text=Based%20on%20the%20latest%20financial,of%20the%20Information%20Technology%20industry.
It will be 2024 or 2025. Share price has dropped from $30 to $3 or 90% in last few years as wallstreet has no confidence in Sabre surviving.
Is it possible that We will lose AS now the HA an AS are merging??
Agree 100%