U.S. Stock Market: Totals and Trends
The U.S. stock market ended another trading day in a volatile state. While the technology sector continues to please investors, companies in the healthcare and telecommunications sectors are clearly struggling. By the end of the session, the Dow Jones Industrial Average dropped 0.43%, the S&P 500 barely managed a gain of 0.02%, and the NASDAQ Composite increased by 0.26%.
Leading the gains among major companies was NVIDIA Corporation, whose shares surged by 3.67% to reach $131.28. Other notable gainers included Sherwin-Williams Company (+1.86%) and The Walt Disney Company (+1.18%). However, not all companies fared well: Boeing Company experienced a decline of 2.93%, Apple Inc. fell by 2.70%, and Amgen Inc. also lost 2.93%. In the S&P 500 sector, Axon Enterprise Inc. stood out with an impressive increase of 15.25%.
Boeing: Continued Decline
The Boeing Company is currently facing significant challenges, and its Q6 2024 results reflect this troubling situation:
Net loss: $3.86 billion
Loss per share: $5.46
Revenue: $15.24 billion (a 31% decrease)
Negative cash flow: $3.5 billion
The reasons behind these figures are familiar issues: worker strikes, problems with defense orders, and production failures. Consequently, Boeing's shares dropped by 4% following the recent Boeing 737-800 crash in South Korea, which resulted in mass ticket cancellations, increased airline inspections, and further damage to the company's credibility.
In recent years, Boeing has faced numerous difficulties, and 2025 is projected to be a challenging year. Production delays and the tightening of air travel regulations have negatively impacted the company. As a result, Boeing is reevaluating its future plans, and investors are closely scrutinizing the company's leadership with each move. On Thursday, February 27th, Boeing Co's stock traded at $173.
One of the key reasons for the decline in profits has been the crisis of confidence among air carriers. On December 29, 2024, a significant Boeing air crash occurred at Muan Airport in the Republic of Korea. Jeju Air's Boeing 737-8AS, operating Flight 7C-2216 from Bangkok, landed without its landing gear and veered off the runway, crashing into the ILS embankment. Of the 181 people on board, only two flight attendants survived. This incident became the deadliest crash in South Korean civil aviation history and one of the largest involving a Boeing 73714 worldwide.
Additionally, another Boeing 737 crash occurred in 2024, though it was smaller in scale. On November 25, 2024, a cargo Boeing 737-476SF operated by Swiftair crashed in Vilnius, resulting in the death of one crew member and injuries to three others.
Following serious incidents, several airlines have begun favoring competitors like Airbus, further impacting Boeing's market position. Additionally, U.S. authorities have tightened regulations on aircraft certification, which may lead to new delivery delays in the future.
Despite these challenges, experts observe that Boeing remains one of the largest players in the aircraft manufacturing industry. Although the company is currently facing significant and likely temporary difficulties, it continues to receive orders from major carriers.
Predictions for 2025: What can investors expect?
The question on everyone's mind is whether it is wise to invest in Boeing now or if it would be better to wait for the situation to stabilize. TD Coen analysts are optimistic, projecting that Boeing's stock could rise to $200 per share. They believe that increasing demand for airliners and new contracts, such as those with China Airlines, could help the company emerge from its current crisis. Their medium-term growth target is set between $190 and $249.
On the other hand, some experts anticipate a decline in stock prices due to ongoing manufacturing issues and declining confidence in product safety. For instance, Gov Capital is forecasting a price range of $127 to $186.19, suggesting a potential pullback. The median analyst price target for Boeing is $183, with 55% recommending a 'Buy' and 45% advising to 'Watch.'
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