Is Boeing (BA) Stock A Buy? Down 70% From Highs!

TL;DR

Is Boeing stock a buy right now? Despite the recent problems, the author believes it is due to the defense spending, duopoly status, and potential for government bailouts. However, the road to recovery will be long and there are trust issues to consider.

Transcript

so in this video today we're going to be talking about my opinion on whether or not Boeing stock is a buy right now based on the current market conditions and based on what is going on with the airline industry as well as within the Boeing Company now a lot of people know that Boeing is a large component of my own investment portfolio so obviously ... Read More

Key Insights

• 🪈 Boeing stock has experienced a significant decline due to the grounding of the 737 max aircrafts and cancellations of orders.
• ❓ The defense spending and duopoly status with Airbus provide some stability for Boeing.
• 😚 The road to recovery will be long, potentially taking several years. Trust in the company has also been lost.
• 🪡 Investing in Boeing stock carries risks, including the suspended dividend and the need for government bailouts.
• 🍉 The author personally believes in the long-term potential of Boeing stock, but acknowledges the challenges ahead.
• ⌛ The defense and military sector offers consistent revenue for Boeing, which may help them stay afloat during this difficult time.
• ✈️ Boeing's duopoly status with Airbus limits competition in the commercial airplane industry.
• 🦻 The company may need to seek government aid in the future, which could come with certain conditions.

Questions & Answers

Q: Why did Boeing stock experience a major sell-off?

Boeing stock faced a massive sell-off due to the grounding of the 737 max aircrafts and cancellations of orders, which led to a loss of trust in the company.

Q: What are the main segments of Boeing's business?

Boeing operates through three segments: commercial airplanes, defense space and security, and global services. The commercial airplane segment was the most affected by the recent issues.

Q: Why does the author believe Boeing stock is a buy?

The author believes Boeing stock is a buy due to the defense spending, duopoly status with Airbus, and the potential for government bailouts. These factors provide some stability for the company.

Q: What are the potential risks of investing in Boeing stock?

The main risks include the long road to recovery, suspended dividend, and the loss of trust in the company. It may take several years for the stock to perform well again.

Summary & Key Takeaways

• Boeing stock experienced a major sell-off, falling 77% from its 52-week high due to the grounding of the 737 max aircrafts and cancellations of orders.

• The company operates through three segments: commercial airplanes, defense space and security, and global services. The commercial airplane segment was the most affected and accounted for 42% of revenue in fiscal year 2019.

• Reasons to buy Boeing stock include the defense spending, duopoly status with Airbus, and the potential for government bailouts. However, the road to recovery will be long and there are trust issues with the company.