JetBlue Airways Corp ( JBLU ) shares are trading lower on Thursday. The stock is seemingly cooling off following Wednesday's rally.

JetBlue Airways ( JBLU ) stock is showing notable weakness. Why is JBLU stock dropping?

Takeover Speculation Cools After Wednesday's Surge

Wednesday's report sparked heavy takeover speculation and sent JetBlue ( JBLU ) sharply higher, making it one of the market's top performers. Today's decline appears to be a natural retracement as traders lock in profits from the sudden spike.

Semafor noted that JetBlue's ( JBLU ) review is still preliminary and may not lead to formal talks or a transaction. That uncertainty is may be contributing to today's pullback, as investors reassess how realistic a deal may be — especially given the intense antitrust scrutiny that has surrounded airline consolidation in recent years.

Takeover Speculation Still In Focus

The report suggested JetBlue ( JBLU ) could be exploring potential combinations with United, Alaska or Southwest, though it remains unclear whether any discussions have taken place or whether there is interest from the other carriers.

The speculation comes as JetBlue ( JBLU ) continues to work through its multiyear turnaround following the collapse of its proposed Spirit Airlines acquisition, which was blocked on antitrust grounds in 2024.

JetBlue Technical Analysis

JetBlue ( JBLU ) is trading 0.4% above its 20-day simple moving average (SMA), but 5.9% below its 100-day SMA, showing short-term stabilization while the intermediate trend remains pressured. Shares are down 15.59% over the past 12 months and are positioned closer to their 52-week lows than highs.

RSI is at 51.35, which sits in neutral territory and suggests momentum isn't stretched in either direction. Meanwhile, MACD is at -0.2936 versus a signal line at -0.3241, a bullish configuration that hints downside pressure is easing even though the indicator remains below zero.

The combination of neutral RSI (around 50) and bullish MACD suggests mixed momentum.

Key Resistance: $5.00

Key Support: $4.50

Analyst Consensus & Recent Actions: The stock carries a Hold rating with an average price target of $5.08. Recent analyst moves include:

BMO Capital: Initiated with Market Perform (Target $4.50) (Mar. 24)

Citigroup: Neutral (Lowers Target to $4.40) (Mar. 20)

UBS: Sell (Lowers Target to $3.50) (Mar. 16)

Benzinga Edge Rankings: The Benzinga Edge scorecard for JetBlue Airways ( JBLU ) highlights its strengths and weaknesses compared to the broader market.

Momentum: Weak (Score: 24.15) — The stock's trend strength is lagging, which fits with its struggle to get back above key longer-term averages.

The Verdict: JetBlue Airways’s Benzinga Edge signal reveals a momentum-challenged profile, with the scorecard primarily flagging weak trend strength. For bulls, the near-term task is defending the $4.50 area and reclaiming $5.00 to shift the tape from "stabilizing" to "recovering."

JBLU Price Action: JetBlue ( JBLU ) shares were down 2.74% at $4.62 at the time of publication on Thursday, according to Benzinga Pro.

Image: Coby Wayne/Shutterstock