“We’re going to start trading Delta stocks on Tuesday, which means that there’s going to be a lot of volatility.
There’s going of course, going to have a lot more news about what happens to the stock market.”
— Delta stock executive Mark D’AlessandroThe shares of Delta, a global logistics company, rose 1.5% to $36.40 on Tuesday on the Nasdaq, as investors sought to weigh in on the possible impact of the company’s planned acquisition of Amazon, which will create a massive competitor to the service provider.
Shares of Delta rose more than 1% in after hours trading in New York to trade at $36,068, according to data compiled by Bloomberg.
Amazon, the biggest U.S. e-commerce company by sales, had a 1.6% rise in shares in the afternoon session.
The move in the stock comes as Delta faces intense pressure from Amazon.com Inc. to make a more attractive offer to lure more customers to its planes.
The company has said it will spend $1 billion to buy Delta’s planes in a deal that could be completed as early as next week.
Delta has been aggressively pursuing a deal with Amazon to become its No. 2 logistics provider, even as it is battling with rival JetBlue Airways Corp. over pricing and pricing power.
Delta Chief Executive Mark D. Alessandro on Monday called the Delta merger a “great opportunity” for the company, but said it could be a bumpy ride.
The Delta stock price surged more than 4% to more than $40,000 on Tuesday after a series of tweets about the deal.
The stock is trading around $36 a share at the time of writing.
Delta stock has surged since mid-April when Amazon announced its intent to acquire the company.
In an interview with The Wall Street Journal, D’Anello said that when the deal was announced, Delta was already “in a lot better shape” than it was six months ago.
Delta shares jumped almost 14% in April, after Delta agreed to acquire JetBlue from United Continental Holdings Inc. for $4.2 billion in cash.
Delta’s stock has since surged more to a high of $37,600 on Monday, after the company announced a $500 million deal with Boeing Co. for its fleet.