Because of two crashes of its B-737 MAX 8 planes, the planes have been grounded throughout the Boeing still currently trades at an almost 38 P/E Ratio. When a company generates too much excess cash, that far exceeds the investable opportunity to grow the business, they have little to do with that cash and the best way to return money to shareholders will be to buyback stock when it is trading below intrinsic value. Press question mark to learn the rest of the keyboard shortcuts. There a real danger that Boeing has lost China, it's single largest market. So although it has dropped a lot, it doesn't look like a deal to me now with the current flight restrictions and added risk of them The stock ended down 23.8% at $129.61, below the $138.72 it closed on the last trading day before Muilenburg’s appointment as chief executive officer on July 1, 2015. Long term looks great. Don't hesitate to tell us about a ticker we should know about, but read the sidebar rules before you post. Other stocks mentioned: DKNG , CPB , ORCL The company’s quasi-monopolistic market position and strong defense contracts remain huge benefits. For that reason, I'm willing to buy Boeing once it starts fixing it's mistakes. Modern airplanes being unable to fly without computer assistance is the norm, and certainly not ridiculous. In Tuesday's stock market breakdown, Jim Cramer talks Moderna, Boeing, Estee Lauder, the FTC, the Fed and more. In fact, Boeing’s assets are slightly higher than their liabilities. I do not think the government will let it fail and 5 years from now this price will be a steal. Boeing set aside $5 billion to compensate the airlines for the 737 Max situation, but I don't think $5 Billion is the ceiling on this mess. REDDIT STOCK ROUNDUP Why GME, EXPR, AMC, KOSS and NAKD Stocks Were Moving Today >>> READ MORE Sponsored by Boeing Co (BA) $230.61 6.58 (2.94%) 16:35 EST BA Stock … They have a backlog of 5000 planes on order, seems like a fair amount to me. The reason I didn't buy yet? But the stock … Since the stock market crash in March caused by coronavirus, The Boeing Company's share price has had significant negative movement. Can you explain how stockholders ended up naked? Boeing stock has crashed harder and rallied less than the rest of the stock market on this bumpy ride down. Wish i had more funds i want to buy! r/boeing: A subreddit for anyone interested in the company Boeing. On March 25 its stock popped at its peak nearly 32% — leading the Dow Jones Industrial Average … Airbus disrupted Boeing’s monopoly in the 90s with building the first A320. All time high is close to $450 a share, and I see the recent troubles with the company all relatively short term problems. Boeing stock has soared like a rocket this week. Almost any post related to stocks is welcome on /r/stocks. Maybe ride some call options when I feel like it's on the rise? Welcome to /r/StockMarket! What’s everyone’s thoughts on Boeing right now? The problem is that there wasn't demand for it so it's not like airlines are forced to find a replacement. It is still fundamental in nature, as an owner you now own more % of the business. While I agree with that Boeing is a good stock to get, I disagree with your argument. Boeing stock surged past the rest of the Dow in Monday trading. If not I might take advantage of the post bailout fallout and buy after the stocks tank. I've accepted the fact that I'm not trying to catch Boeing at it's lowest, but Boeing also isn't doing anything to pull itself up. The 737 MAX crashes and coronavirus pandemic are not one, but two “black swan” events , unpredictable developments that hit The Boeing Company specifically with existential shocks. Their negativity is generated by “Treasury Stock” being boosted by share buybacks. Doesn't seem too crazy compared to NFLX trading at 130 P/E even after the drop. It has an civil aircraft backlog on orders for the next 7-10 years and the duopoly with Airbus brings a lot of customers to them only because Airbus can’t deliver the market demand for all airlines. You need to create a sustainable/certified supply chain since Boeing and Airbus are mainly system integrators. | Source: Yahoo Finance The 737 MAX 8 aircraft, enduring scrutiny for its Lion Air crash last October, was delivered in May of 2017. The Boeing 747 was nearly as big but is also retired since 2017. I get that it’s a hard business, but somewhere someone’s going to put the money in to compete. Disruption is not a thing invented in the 21 century. Literally every aircraft in existence pitches up when you add power. It took the stock market 16 months to reach bottom during the 2008 Financial Crisis. The Chinese C919, a direct B737 competitor, is entering the Chinese market in 2021. Press J to jump to the feed. Boeing shares hit a fresh seven-year low Thursday after analysts at Cowen & Co. slashed their price target on the struggling planemaker amid questions over the … Here you can Airbus A380 has had no direct competition with Boeing aircraft. Let's have a look at the charts to see what's going on. The Boeing Company (NYSE:BA) is not the most popular stock in this group but hedge fund interest is still above average. Pretty sure they have a 12-figure backlog, that doesn't hurt. A subreddit for anyone interested in the company Boeing. It is a big military contractor and the USA will pump big time money into them. I have a feeling it will continue to fall but overall will not go to zero. Between 2000 and 2013 it's stock effectively went nowhere. Btw, Delta Airlines (DAL) has no 737 Maxes in their fleet. Literally every modern fighter would fall out of the sky if left solely to the pilot to fly. In other words, it has a highly leveraged capital structure with $5 billion more in liabilities than in assets. You need millions/billions of money for R&D, engineering, designing a new aircraft which means you need state funding or need to be Elon Musk, Jeff Bezos or alike. So should I wait for the bailout + fallout and then prepare to buy super cheap stocks as it recoups? Boeing stock is a classic example of a company too big and hard to fail, but this does not make it any more attractive now. Boeing gave up over 5% of its share price Wednesday against the Dow’s more modest dip of 0.7%. I’m interested to hear what others thoughts are. The 7-10 year backlog reads to me as an industry primed for disruption. MCAS is not a stall prevention feature, it only is designed to regulate pitching motion due to thrust increases. GM '08), imo the risk/reward just isn't there to warrant a position. In the last week of February, Boeing stock tested down to the 200-week moving average and held this area as support. High institutional ownership can be a signal of strong market trust in this Next I’ve been eyeing this too. Press J to jump to the feed. Boeing needs to go next to make room for a better bellwether stock. Short term, lots of issues. Check out our wiki and Discord! Boeing Stock a Strong Contrarian Play U.S. aircraft maker Boeing (BA) has been in the news lately, and not for good reasons. Press question mark to learn the rest of the keyboard shortcuts. Am I missing something or is this crazy for a company that is currently in so much controversy? Not comparable, New comments cannot be posted and votes cannot be cast. About the a380 I don't think that it will have a big impact on the market. If they get a bail out, shares will be diluted... bail outs are meant to help the company survive not help the shareholders... at least that was Obama thinking... with the orange clown, who knows. Between 2000 and 2013 it's stock effectively went nowhere. Just because a company will still be in operation in 10 years time don’t mean it … No competition. Check out our wiki and Discord! The problem is probably not to build the aircraft. It's true that some airlines like SQ and AF are starting to downsize but the replacements have already been picked. Boeing has 3 things which won’t make it go anywhere the next years. They added a system to minimize the effect making it easier to fly. Stock screener for investors and traders, financial visualizations. Index DJIA S&P500 P/E-EPS (ttm)-20.73 Insider Own 0.10% Shs Outstand 575.50M Perf Week 3.35% Market Cap 135.34B Forward P/E 42.45 EPS next Y 5.43 With the B737 the single most important plane for BA's bottom line saying "no competition" is akin to the Black Knight's flesh wound. Boeing stock dropped 1.29% on Monday amid a broad market pullback. This was known. Boeing stock (NYSE:BA) continued to slide into a second day of losses, creating some drag on the Dow Jones Industrial Average. 5, 2021 at 11:06 a.m. Because Boeing keeps finding a way to fuck shit up. Yet BA stock is … The Dow Jones Industrial Average rose by as much as 311 points before paring gains. they can get bailed out and common stock can still get wiped out (i.e. Afterwards you need to get all parts of the aircraft certified by FAA, TCCA, EASA and other authorities and make month of flight tests. Boeing stock finished the month of May at $145.85 but surged to $230.50 by the end of trading last Monday: good for a 58% gain in just six trading days. From 2013 through Q1 2019, Boeing has blown a mind-boggling $43 billion on share buybacks. That wasn’t the same story a … Plus all international competition is now going to have 50% tarrif. Don't forget, BA's stock performed over the past 6 years due to over $40 billion spent on stock buybacks; it was not fundamentals. For example, I also had my eyes on Boeing since the disaster. Boeing (NYSE: BA) stock has been a mixed bag for awhile. Completely different sectors. Boeing … I have faith that the company won't go under, and as like many, we're all ready to buy, but many (like me) keeps wondering when will the company's leadership gain enough confidence to make sure we're not all catching a falling knife? For those scoffing at the idea, … Only 0.16% of the stock of The Boeing is held by insiders. And Another look at the Reddit Rebellion and some insight into Rocket Companies and Boeing Podcast Transcript Jeffrey again with another edition of Stock Smart, the January 29th 2021 edition for Friday. Boeing’s biggest competition comes from Airbus A320 direct competitor to B737 where the market is nearly shared 50/50. Using software to solve a major hardware problem (the plane stalling when the pilot punches it) is ridiculous. news of boeing maxing out on their line of credit is pretty telling about their liquidity issue. Boeing, DraftKings, Campbell Soup and Oracle were our top stock trades for Thursday. Almost any post related to stocks is welcome on /r/stocks. I would disagree respectfully in that share buybacks are an artificial boost to share prices. This has goosed the stock, but it also caused Boeing to have a total equity of a negative $5 billion. I can’t see how they’ll keep buying from a duopoly forever rather than at least 1 or 2 of them building truly competitive industries of their own. Boeing just got given even more of a monolopy. Analyst Has 3 Reasons to Love Boeing Stock Now Mar. So they are just fixing it up. Its last market close was $216.45, which is 34.48% down on its pre-crash value of $330.38 and 143.20% up on the lowest point reached during the March crash when the shares fell as low as $89. It mainly hinges on a vaccine-fueled recovery in 2021. Boeing stock is on the brink of crashing below $100. Then the financial engineers took over. When they increased the size of the plane, the software was always required for stability. don't forget that Boeing is an important contractor for the Pentagon, at least 1/3 of its business and revenues ... and they do not have to compete with airbus for that business .... https://www.janes.com/article/89792/boeing-military-deliveries-offset-sluggish-commercial-sector. Then the financial engineers took over. I, myself, said I'd get on the action when it reaches 330... then 300... then $250, and then at $150 because the government and commercial space NEEDS them. Boeing Stock: 2021 Recovery vs. 2024 Recovery It’s easy to follow the bull case for Boeing. combine that with their enormous debt load, negative cash flows after 737 max crisis which will further be exacerbated by coronavirus supply issues and management opting to buyback 100b+ worth of stock when the company was trading at 300+ makes me think a GM style bailout is in the works which means common stock shareholders get demolished. But neither Boeing, nor the stock market have hit bottom yet. | Source: Yahoo Finance Boeing Stock Relinquishes Its Dow Jones Crown Boeing was long the most heavily weighted component in the Dow Jones Industrial Average (DJIA), and its grisly performance is the primary reason the Dow has trailed the S&P 500 and Nasdaq by a considerable margin in 2020. The company’s unique problems converge at an overwhelming nexus of individual corporate, industry-level, and global macro misfortune. Had BA spent a fraction of the $43 billion it used to boost it's share price on properly designing a modern B737 replacement it would probably not be in the predicament it is today with the Max. Not China but Asia being the biggest market will bring a lot of growth to Airbus and Boeing and C919 will be a little to nothing change. Boeing (NYSE: BA) is a … Boeing’s stock price was down by as much as 1.1% on Monday, going against the grain of a wider market rally. Production is stopping after orders are fulfilled, most airlines will continue to operate for years. Boeing Co said on Wednesday it still expects U.S. regulatory approval for its grounded 737 MAX in the fourth quarter, sending its shares higher despite a slump in quarterly profit. Don't hesitate to tell us about a ticker we should know about, but read the sidebar rules before you post. But none of this likely matters in today's crazy markets, where fundamentals don't matter and financial engineering rules to the detriment of actual engineering. ET on 247WallSt.com Reddit Stocks: GME, AG, UWMC, RKT and Other Top Names on r/WallStreetBets Today Prior to 2013 their stock was a dog. Shit i thought 190 was a steal, New comments cannot be posted and votes cannot be cast. It could never fly without the software. Buybacks do generate negative equity, but the negative equity is a result of accounting requirements, and does not mean that the company has a highly leveraged capital structure, Nor does it mean that they have little wiggle room left. Market is changing from Hub business (which prefers big jets) to direct connection flights (which prefers smaller long range jets). Would you buy Toyota, Ford, GM or Tesla stock right now if some of their factories were shutdown? Engineers knew by August 2017 that there were possible problems with the aircraft, although senior management was apparently not aware of their concerns. Boeing's stock used to be a slow performer up to 2013. C919 has only a certification in China and the market entry is not even confirmed for coming years. Boeing should redesign the plane, in my opinion. Unlike some other companies Boeing is very secure, a rock of a stock. This is a company that has little wiggle room left. I'm personally waiting on a sub $100 pricepoint before I start buying en masse. Boeing stock has had a significant run-up in price since late October when it was hovering around $140, but continued volatility and short-term profit-taking are likely to be with us in February. My opinion is that Boeing stock seemed ridiculously inflated to me before with all the 737 Max issues. Percentage Held by Institutions 51.41% of the stock of The Boeing is held by institutions. GM '08) imo the risk/reward just isn't there to warrant a position. they can get bailed out and common stock can still get wiped out (i.e. An Air Canada flight operating a Boeing 767 was forced to make an emergency landing in Madrid over technical issues. Well they have missed out on like 40% of their normal earnings the last two quarters so you have to normalize for that to make the P/E number mean anything at all. Our objective is to provide short and mid term trade ideas, market analysis & … Boeing's stock used to be a slow performer up to 2013. The stock has a Moderate Buy consensus rating, based on 13 Buys, 6 Holds and 1 Sell. China, South Korea, Japan, India, Middle East, Russia. Here you can share videos, pictures, news articles; anything related to Boeing! Let's have a look at the charts to see what's going on. (Yes I know the long term outlook is they will get past the max situation, just wondering how the P/E is still so high). Maybe not, but who's to say we've even come close to the bottom yet especially with the current economy. 1.3m members in the StockMarket community. A380 is dying and being retired, mostly to be replaced with more Boeing aircraft. If I didn't trust the news, my gut, or trust the falling knife phrase, I promise you I'd be stuck with Boeing at 330 this moment.