Jet.AI Inc (NASDAQ:JTAI) experienced a pronounced surge in its stock price during Thursday morning trading, largely influenced by active discussions across social media channels and a recent disclosure regarding new executive employment agreements. The company's shares, which have been trading at relatively low levels, saw a sharp uptick following the release of a Form 8-K filing submitted to the SEC late Wednesday that detailed updated contracts for key leadership figures.
The filing reveals that Executive Chairman and interim CEO Michael Winston, along with interim CFO George Murnane, have entered into revised employment arrangements effective January 1. Mr. Winston's base salary is set to increase to $425,000, while Mr. Murnane's will rise to $300,000. The agreements stipulate that annual salary increments will at least keep pace with inflation, with the possibility of additional merit-based raises and bonuses capped at 100% of their base salaries.
Importantly, the contracts contain change-of-control provisions related to a potential merger with flyExclusive. Under these terms, each executive would receive a $1.5 million cash bonus if a deal closes or if they are terminated without cause or depart for a legitimate reason. In such cases, full vesting of equity awards would also be triggered, providing substantial financial safeguards and incentives amid strategic corporate developments.
Beyond executive compensation, Jet.AI is actively repositioning itself within the AI sector. In December, the company announced a joint venture with Choo Choo Express LLC to construct a 50-megawatt data-center campus in Moapa, Nevada. This initiative aligns with management's vision of creating an enterprise valued at approximately $500 million through advanced AI infrastructure projects. Nevertheless, the company also withdrew a plan for a public offering of common stock at the end of December, citing unfavorable market conditions as the primary reason.
Despite the positive buzz generated by these developments, technical data from Benzinga Edge demonstrates ongoing challenges for Jet.AI's stock. The company holds negative scores in short, medium, and long-term price-trend categories, signaling persistent weakness in its market trajectory. This technical backdrop contrasts sharply with the recent stock price rally, underscoring a complex and cautious investment climate.
At the time of reporting on Thursday, Jet.AI shares rose by 37.50%, reaching 76 cents, a level still situated close to the stock’s 52-week low of 52 cents as tracked by Benzinga Pro data. This 52-week low seems to represent a firm support level for the stock, potentially serving as a psychological floor for investor activity. Conversely, resistance is anticipated near the $1.00 price point where market participants might opt to realize gains or reevaluate their holdings.
Market analysts suggest that while the recent price movement is encouraging, the stock remains precariously positioned. A sustained climb above 80 cents could attract further buying pressure. However, the substantial gap between current prices and previous highs calls for a measured approach by investors, highlighting the need for careful monitoring of subsequent price action and corporate developments.
Overall, Jet.AI's recent executive contract updates and strategic pivot toward AI infrastructure have captured investor attention, reinforcing interest in the company’s future prospects. At the same time, technical indicators and market dynamics recommend a prudent stance, reflecting the uncertainties inherent in the stock's current trading patterns and broader market environment.