The Boeing Company is a multinational corporation based in the United States. The company specializes in designing and manufacturing commercial and military aircraft. The company makes well-known commercial airplane models like the Boeing 737 MAX, 787, 777, as well as several variants of these types. The company also makes military aircraft such as the VC-25, P-8. Along with these products, the company also has a space sector. The company was founded in 1916.
Why You Should?
- As vaccines are developed and distributed to populations around the world, Boeing’s stock price will continue to move higher. This is because governments around the world will start to refocus their spending on defense needs. Airlines around the world will also see demand recover. This will allow them to spend money on new airplanes. This will benefit both Boeing and its investors.
- Barack Obama and Joe Biden spend billions of dollars on defense needs. In my opinion, the current Biden administration will not look to lower defense spending. This will benefit the company as the government will continue to award them new contracts for more defense technology. This will also benefit investors in the company.
- Boeing is continuing to develop new commercial and military airplanes. As these new airplanes are launched, customers around the world will be interested to upgrade their fleets. Historically, this has happened with the launch of the Boeing 787, 737 MAX, and 777X airplanes. This makes Boeing a great long-term investment. These future growth opportunities will also benefit investors.
- After a long grounding, the Boeing 737 MAX has finally returned to the skies. Many countries and airlines around the world have already or are in the process of recertifying the aircraft. This has helped Boeing gain 98 orders for the airplane and has also allowed the company to continue deliveries of this plane type. This has greatly benefited the company and has also benefited investors.
Why You Should Not?
- Boeing has tough competition with many companies around the world. Some of these include Airbus, Northrop Grumman, Lockheed Martin, and many others. This competition has hurt the company in the past as private and government entities have awarded contracts to competitors. This might also hurt investors in the company.
- The COVID-19 pandemic has decimated the demand for new commercial and military aircraft. This is because people are staying home and not traveling, which causes a drop in demand for air travel. Furthermore, governments around the world have briefly stopped spending money on defense products as they refocus this money to fight this virus. This has hurt Boeing and its investors.
- The Boeing 737 MAX grounding has caused headaches for airlines around the world. Boeing has had to spend money on the redevelopment of the airplanes software. Furthermore, they will continue to spend millions of dollars in order to get the stored MAX’s back in the air and delivered to customers. This has hurt the company’s public relations and has also hurt investors in the company.
In my opinion, I think that Boeing is a decent long-term investment due to COVID-19 vaccine optimism, a Biden administration, future growth opportunities, and the lifting of the Boeing 737 MAX grounding. However, tough competition, as well as impacts from the pandemic and the MAX grounding, might continue to hurt the company in the future.