Boeing Stock: Factors Affecting Boeing Stock

The ‘Boeing Stock’. In 1916, the Boeing Society was established in the United States of America. This company was one of the first to manufacture airplanes internationally. Its main competitors are the companies Airbus, Lockheed Martin, and Northrop Grumman. Today Boeing continues to work in the fields of civil aviation, military aeronautics, and space.

Boeing Stock

Boeing Stock

But the success of Boeing as it is known today is also due to the purchase of two other American companies, Rockwell International and McDonnell Douglas more recently. This has made the Boeing Stock an eye-catching one in the stock market. Boeing has a total turnover of more than 68 billion dollars for a net result of more than 1.3 billion dollars a year.

Boeing vs Airbus

Due to the specificity of its activities, the Boeing group does not have many competitors. The only manufacturer it battles with on a regular basis to win or regain some major markets is Airbus.

Since the late 1990s, the two groups have been competing fiercely in the field of civil aircraft, but also in the defense sector. Boeing is also a direct competitor of Airbus’ subsidiary Airbus Defense and Space, which operates in the fields of military aircraft and even shuttles.

Apart from Boeing and Airbus, there is no other company in aeronautical construction that has managed to gain a foothold in the great stock markets of the world.

Factors Affecting Boeing Stock

Here we shall be discussing those factors that play a major role in the stock market and also affects Boeing stock at the same time too. Here are some of the factors that affects Boeing Stock

  1. Demand for commercial aircraft is currently experiencing a significant rise that the Boeing group could take advantage of. This rise in demand is due to increasingly strong globalization and, therefore, to the need to connect the world, which leads to an increase in the number of passengers.
  2. The expansion strategy established by the group for some years should continue to bear fruit. It concerns the expansion of its operations on an international scale, with organic and inorganic development. This includes strategic alliances with other companies, as was the case with General Electric, Lockheed Martin, or Raytheon, within the framework of the establishment of new projects and to respond to the increase in demand.
  3. On the other hand, the aerospace and defense market has also experienced strong growth for some years around the world. Obviously, Boeing should take advantage of this strong demand to fill its order book and secure its future revenue.
  4. Increasing competition is the group’s biggest problem. Indeed, Boeing faces significant competition in all its areas of activity, and this comes from various international companies. In addition, their market shares are increasingly threatened.
  5. Finally, let us remember that about 72% of the Boeing group’s turnover comes from a BDS activity that depends on fixed-price contracts. While this allows the group to reduce its costs, at the same time it carries a risk of loss of margins and therefore a negative influence on financial results.

These factors discussed above can affect Boeing stock either in a positive or negative trend depending on how they act.

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