• The Boeing Company was founded in 1916 and had its IPO on the New York Stock Exchange in 1978
• Boeing trades on the NYSE under the BA ticker and is part of the Dow Jones Industrial Average and the S&P 500 - two of the most widely-followed stock indexes in the world
• As of April 2023, Boeing’s market capitalization was $125 billion
• Boeing is one of the largest aerospace companies in the world and operates through four segments: Commercial Airplanes; Defense, Space & Security; Global Services; and Boeing Capital
• In 2019, Boeing faced a crisis when two of its 737 MAX aircraft crashed, leading to a worldwide grounding of the aircraft and a significant decline in its stock price
• Boeing is one of the largest defense contractors of the U.S. Department of Defense
• Newport Trust Co is the largest institutional shareholder of Boeing, owning 7.40% of the company’s stock
• In 2022 Boeing repurchased $5.0 billion of its common stock
• Airbus SE is the largest competitor of Boeing and the two have dominated the global aerospace market since the 1990s
•  Boeing had a long track record of profitability, which stopped after the 737 MAX crashes caused the company to end the 2019 fiscal year with a net loss of $636 million

Boeing’s stock has endured some difficult periods since the 737 MAX incidents in 2019, which was quickly followed by the Covid-19 pandemic and lockdown measures were enforced around the world - severely impacting the demand for domestic and international flights and thus, reducing the demand for Boeing’s aircraft. This caused Boeing to be burdened by a massive inventory of depreciating aircraft. These factors, coupled with fierce competition from Airbus, led to Boeing ending the 2019 fiscal year with a loss, which was something Boeing’s existing shareholder base was not accustomed to seeing. 

While Boeing has managed to claw its way back from the below $100 lows of 2020, the stock has yet to even come close to reaching its 2018-19 performance levels. 

However, Boeing’s current financials have shown some improvement YoY, with the Q4 2022 report showing:

• A revenue increase of 35.06% - reaching $19.98 billion for the quarter
• Net loss reduction by 84.7% to $634 million
• Profit margin boosted to 3.17% - up 88.68% YoY

While Boeing’s short-term financials leave a lot to be desired, the company has managed to reduce the pressure on its bottom line and could be on the right track to eventually regain profitability in the long run. 

Prospective investors should look at the potential advantages and disadvantages of investing in Boeing stock before putting their money at risk. While Boeing’s financial position might not be ideal, the company still has a lot going for it, and looking at both sides of the coin is important in order to make the right decision. 

Pros

• Robust market position - Boeing, alongside Airbus, is one of the dominant players in the global aerospace industry, which gives it a lot of room to operate in 
• Diversification - Boeing is not solely dependent on the production of commercial aircraft and is also represented in the defense and security industries
• Technological innovation - Boeing invests heavily in research and development, which helps it to stay ahead of competitors and maintain its market position
• Strong backlog - Boeing has a robust backlog of orders, which allows the company to forecast its future performance more accurately and plan its cash use for the future

Cons

• Capital-intensive - Boeing operates in a severely capital-intensive industry, which was evident during the Covid-19 lockdowns when hundreds of aircraft had to remain stationary and depreciate at Boeing’s facilities 
• Heavy regulatory oversight - The Aerospace industry is heavily regulated, which increases the risk of regulatory issues, resulting in fines and legal disputes
• Cyclical industry - The aerospace industry is highly cyclical, with the potential for large swings in demand based on global economic conditions and geopolitical events
• Supply chain risks - Boeing’s production line relies on a very complex global supply chain and even minor disruptions can reflect negatively on Boeing’s bottom line 
• Debt levels - Boeing carries a lot of debt on its balance sheet, which can be problematic in the long run, as interest payments exert stress on the company’s bottom line 

• The Boeing Company is one of the largest aerospace companies in the world
• Alongside Airbus, Boeing operates a duopoly on the global aerospace market and is also one of the largest defense contractors in the United States
• The company has come under financial stress after the 737 MAX crashes in 2019 and the lockdown measures that followed the Covid-19 pandemic
• Boeing’s stock has lost nearly half of its market value since 2019 but has managed to regain some lost ground from 2021 onwards
• The company has an impressive order backlog and has discontinued dividends to save up cash