Boeing Shares Are Not Flying Today

Earlier today, shares of Boeing (BA) were trading at 8% less than their usual price. This is the lowest price it’s ever traded at since the early days of the pandemic.

In no time, investors got worried about the company’s prospects. So let’s clear some of their doubts. What’s going on with Boeing? Can it recover from it?

Boeing Doesn’t Work Well Under Pressure

Boeing has one meaningful trait, which is also a major weakness. Instead of working towards expansions and self-investments, its main focus is reaching survivability.

As history has shown, anytime that the airline gets caught in a tough spot, all of its resources are spent on getting out of there. This isn’t the same as growth, mind you. Instead, it’s more about minimizing losses. Inevitable losses.

Of course, these actions are respectable. But if we were to account for their frequency, as well as their intensity, it does limit Boeing’s future.

That being said, it makes sense that the company would be struggling right now. We’re going through one of the biggest recession periods ever recorded. Once again, Boeing needs to work on its well-being before working on the needs of its investors.

What’s Next?

Regardless of the situation, Boeing still has a lot of strengths. 

For starters, the company’s price-to-sales ratio rarely goes above 1. None of its competitors have accomplished something similar.

Second, Boeing has a partnership with Airbus. This should help kick-start its commercial sales any time soon.

Don’t get us wrong, Boeing is indeed in a tough spot. But we believe that the company has enough aces up its sleeves to recover when the time’s due. For investors, this might be worth a leap of faith.