Boeing stock price has crashed in the past few days, reaching its lowest level in over a month. It has underperformed the broader stock market as the top indices like the S&P 500 and Nasdaq 100 jumped to a record high.
Boeing is facing headwinds
The ongoing Boeing stock price crash is happening as the company faces some major headwinds.
One of these challenges is that its margins are under pressure after Donald Trump launched his tariff campaign earlier this year. Specifically, he added a 25% tariff on imported steel and aluminum, two metals that Boeing uses in all its planes.
Most recently, the chief executive officer noted that its long-delayed 777X jet is behind schedule in terms of certification.
The wide-body plane, which was launched in 2013 and deliveries are scheduled for 2019, may see another delay from the expected 2026 launch. This delay is giving Airbus an edge in terms of its backlog.
Boeing 777x has a backlog of 551 planes, with Emirates being the biggest customer, followed by Qatar, Cathay Pacific, and Singapore Airlines m
On the positive side, the management believes that it is in a position to boost the supply the 737 Max plane to 42 jets a month from the current 36, a move that will add millions of dollars to its revenue book.
Boeing stock price also crashed because of a strike at its St. Louis area. The two sides reached a deal this week that will see Boeing increase its pay to the workers by 45% in the next four years. They will also receive a ratification bonus of $4000.
Read more: Boeing stock price many catalysts points to a surge to $267
Major tailwinds remain
Still, despite these challenges, there are some key bright spots in the company that will make the current dip a good one to buy.
The most important one is that the company’s jets have not been involved in an accident since last year. This means that the ongoing focus on efficiency by the CEO is working
The other major catalyst for the Boeing stock is that the company is starting to attract customers, many who are encouraged by its lower backlog compared to Airbus. For example, it received 26 orders in August and just two cancellations. Most of the orders came from Cathay Pacific, which bought 14 777 planes.
Boeing has received 725 gross orders this year and just 46 cancelations, giving it a backlog of 6,000 planes.
This performance means that Boeing is beating Airbus this year as the company has received gross orders of 600 planes and 96 cancellations.
The most recent results showed that Boeing’s business is doing well, with its revenue soaring by 35% in the last quarter to $22 billion and its net loss narrowing to $635 million. Analysts see the company experiencing more growth and turning a profit in 2026. The average revenue growth for this year is 29%, bringing it to $86 billion.
Analysts expect that the company’s earnings per share will improve to a loss of $2.06 from $20 last year. It will then make a profit of $3.64
Boeing stock price technical analysis
The daily timeframe chart shows that the Boeing share price formed a double-top pattern at $237 and a neckline at $215. This is one of the most popular bearish chart patterns in technical analysis.
The distance between the upper side of the double-top pattern and the neckline at $215 is 9.20%. Measuring the same one from the neckline means that the Boeing stock price may move below $200. In the long term, however, the stock will likely bounce back and move above the highest point this year.
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