4 ms·
I’m surprised the stock isn’t doing worse than it is doing currently TBH.
by lifeinthevoid 2y ago
I’m surprised the stock isn’t doing worse than it is doing currently TBH.
- Rinzler89 2y agoThey're a major defense contractor, that's why.
- nickff 2y agoMany of their defense projects haven’t been going well (notably space launch, refueling tanker, and jet trainer).
- Rinzler89 2y agoDoes it matter? Where else is the US military gonna go to instead? Airbus?
- deleted 2y ago[deleted]
- nickff 2y agoLockheed Martin made and still supports the C-5 Galaxy, and Northrop Grumman is making the B-21, so both of those manufacturers (at least) are quite capable of manufacturing large aircraft.
- passwordoops 2y agoIt's still a blue chip with either monopoly or cartel control over their relevant markets. Until the government acts in a direction that would break up that scenario, you can expect the stock to continue its good performance
- greentxt 2y agoGood performance is a stretch. It's down 15% on the 1yr and 50% in the 5yr. Arguably it's a safe buy right now, but that's because, given what you say, it is unlikely to fall further. At least under the current administration.
- Havoc 2y agoUS won't let its main player in the airliner space go down no matter how many people they kill with their negligence. The stock market knows this.
- chinathrow 2y agoWhile this is certainly true right now, the clients will eventually revolt and go elsewhere.
- quickthrowman 2y agoWhere? The only other option is Airbus. I would never board a Comac aircraft.
- kergonath 2y agoAnd Airbus has quite a long backlog…
- throwup238 2y agoBoth of them have ridiculous backlogs. The A320 family has yet to deliver ~7,000 jets out of ~18,000 ordered, and the 737 Max family has only delivered 1,500 jets out of 6,270 orders. At this point if you're an airline that has to put in a new order, you're not going to see the new jets for close to a decade. https://en.wikipedia.org/wiki/List_of_Airbus_A320_orders_and_deliveries https://en.wikipedia.org/wiki/List_of_Airbus_A320_orders_and... https://en.wikipedia.org/wiki/List_of_Boeing_737_MAX_orders_and_deliveries https://en.wikipedia.org/wiki/List_of_Boeing_737_MAX_orders_...
- bobthepanda 2y agoIIRC this is the real reason why JetBlue is trying to buy Spirit. They have wildly incompatible business models, but they both operate the same single aircraft type.
- 2y ago
- quickthrowman 2y agoAirbus is their only competitor in the civilian market. The US Government has actively destroyed companies that attempt to compete with Boeing [0]. They’re also one of the top 5 prime contractors in the defense industry. There is no possible way the US lets its sole domestic airplane manufacturer go bust. I would speculate that the government wouldn’t even want to chance a Boeing bankruptcy. [0] https://en.m.wikipedia.org/wiki/CSeries_dumping_petition_by_Boeing https://en.m.wikipedia.org/wiki/CSeries_dumping_petition_by_... I’m just a dumb guy who works in construction, if I know the above, then the market definitely knows it.
- nickff 2y agoBoeing is not the only US airplane manufacturer, it is the only commercial airplane (airliner) manufacturer.
- quickthrowman 2y agoIf someone refers to Boeing as the sole domestic airplane manufacturer, I would assume they also know that Cessna exists but are referring to the Boeing/Airbus duopoly.
- nickff 2y agoI’ve never heard anyone else mention Boeing as “the sole domestic airplane manufacturer”, given that Lockheed Martin and Northrop Grumman are still around. I follow aviation quite closely, and the trade magazines are always quite clear on this sort of thing.
- deleted 2y ago[deleted]
- eastbound 2y agoI would say it’s the international repercussions that put pressure: - Boeing’s home customers don’t really have a choice, - European customers really have an incentive to switch, even possibly Ryanair, since Boeing is a laughing stock and planes-that-are-losing-doors are a meme for internet-oriented people in Europe, - But it also has an impact on diplomacy and on american hegemony when everyone turns away from them for industrial competence. And it’s rather the loss of the leadership of the role of the world’s safety organization of the FAA, when it was only the European safety organization who halted this nonsense.
- xyst 2y agoIt will be a slow death.