Boeing stock price remained under pressure in 2024 as the company moved from one crisis to the other, pushing it to lose market share to Airbus. The stock plunged by over 20% during the year as Airbus rose by 12%. It has lost about 50% of its value in the last five years, while Airbus is up by just 20%. So, will Boeing recover in 2025?
Boeing needs a good year
Boeing, one of the biggest American companies, is under intense pressure as its business continues facing major issues. Some long-term customers have started shifting slowly towards Airbus, a firm that has a long record of safety. Some customers are even afraid of using Boeing’s planes.
Boeing’s main issue is that it has moved from one crisis into the other one. It handled the 737-Max crisis well during the pandemic and things moved back to normal, pushing its stock to $277 in 2021.
The company then found itself in another crisis early 2024 when one of its planes lost its door. That crisis led to more issues, including whistleblowers who expressed concern about its manufacturing progress. It also led to the grounding of its planes, acquisition of Spirit AeroSystems, and the firing of its chief executive.
Boeing’s activity has been muted of late, which is a good thing for the company as it has remained away from the spotlight. As for now, there are also signs that the company’s manufacturing issues did not cause the Jeju Air crash in South Korea.
Boeing also found itself in trouble after its starship was replaced by Elon Musk’s SpaceX to go back for two astronauts who have been stuck in space. As a result, Boeing is considering doing away with its space program as it narrows its focus.
Therefore, for the Boeing stock price to recover, it will need to stay in the sidelines and out of the spotlight this year. Any major aircraft issue and possible grounding will likely have a negative impact on its operations and stock.
BA earnings download
Boeing’s issues led to a series of analyst downgrades and big losses. The most recent results showed that its revenue dropped from $18.1 billion in the third quarter of 2023 to $17.8 billion.
Its losses mounted, as the core loss per share moved from $3.26 to $10.44, while its free cash flow moved from $0.3 billion to $2 billion.
Boeing’s commercial plane segment experienced a slight deceleration as its revenue dropped to $7.4 billion from $7.9 billion. That happened as the firm delivered just 116 planes during the quarter as workers went on strike. It ended the quarter with a backlog of 5,400 planes worth $428 billion, lower than Airbus’s 8,750.
Therefore, Boeing has a lot of work to do to increase its deliveries, boost its safety record, and attract more customers. It hopes that Kelly Ortberg, the new CEO, who has turned around several companies will do the same at Boeing. One of his actions, such as moving his office to Seattle will be a good starting place.
Boeing stock price analysis
The daily chart shows that the BA share price has crawled back in the past few weeks. It has risen from $136 in November to $177. The stock is about to form a golden cross as the 50-day and 200-day Exponential Moving Averages (EMA) cross each other.
Boeing has moved between the 23.6% and 38.2% Fibonacci Retracement level. Oscillators have all continued rising. Therefore, the BA stock price may continue soaring in 2025, with the next point to watch being at $217, the 61.8% retracement point and 25% above the current level.
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