Boeing’s Stock Just Popped 5%, But There Are 32 Billion Reasons to Still Worry

Boeing shares jumped 5% this morning, and yeah, the stock’s looking a little better, but if you think Boeing’s suddenly out of the woods, I’ve got some beachfront property on Mars you might be interested in. 

Let’s not forget, this is the same company that’s casually burned through $32 billion since 2019. If you've ever winced at your Amazon cart total, just imagine being Boeing’s CFO.

So, why the spike in Boeing shares this morning? Boeing just cut a deal with 33,000 employees across Washington, Oregon, and California to avoid what could’ve been a massive strike. 

The deal includes a 25% pay bump over the next four years, revamped retirement savings (because apparently, they’ve decided their employees should actually be able to retire), and a sweet $3,000 bonus to keep the workforce happy. Oh, and throw in some parental leave, because, you know, happy families = happy workers, right?

This is a big win for new CEO Kelly Ortberg, who’s been handed the keys to what feels like the Hindenburg of aerospace companies. Without this labor agreement, Boeing would’ve been looking at billions more in lost cash flow—money they desperately need right now, considering their debt is climbing faster than a Boeing 747. Seriously, their debt has ballooned from $13 billion in 2018 to $48 billion today.

But let’s not kid ourselves. This deal might save Boeing from immediate disaster, but it’s not going to patch up the financial black hole they’ve been digging. Since 2019, Boeing has racked up $32 billion in losses, and their stock is still down 37% this year. Why? Oh, just a delightful mixture of safety issues, quality control disasters, and a space shuttle that left astronauts stranded for months in the International Space Station. No big deal, right?

Speaking of disasters, let’s talk about Boeing’s 737 MAX. You know, the plane that was grounded globally after two tragic crashes in 2018 and 2019? Yeah, that one. Just when you thought Boeing was starting to get its act together, a door plug flies off mid-flight on an Alaska Airlines jet earlier this year. You read that right. A door plug. Not exactly a confidence booster, is it? At this point, Boeing’s planes are holding on with duct tape and crossed fingers.

Despite the dumpster fire that’s been Boeing’s last few years, they’ve got one thing working in their favor—a duopoly. Boeing and Airbus are the only two companies that make the full-size passenger jets airlines desperately need. With a $529 billion backlog of orders for 5,600 planes, Boeing’s got a few years of work lined up. The problem? They’ve slowed production down so much trying to fix their safety issues that they can’t even crank out enough planes to turn a profit.

And that debt? Yeah, it’s not going anywhere. Boeing’s staring down $4.3 billion of debt due in 2025, and another $8 billion in 2026. Moody’s has already hinted that Boeing’s debt might get downgraded to junk status if they don’t figure things out. The solution? Just stack more debt and pretend everything’s fine. What could go wrong?

Sure, this labor deal buys Boeing a bit of time, but it’s like patching a leaky pipe with chewing gum. They still have to fix their quality control issues, get their planes flying safely, and, oh yeah, figure out how to stop losing billions of dollars. Because if they don’t, Airbus—who’s already pulling ahead with a bigger backlog of orders—might just leave Boeing in the dust, forever.

Bottom line: Boeing bought themselves some time, but if they don’t clean up their act soon, that $32 billion loss could just be the start of their problems. The next few months are going to be make-or-break for the company—and if they don’t start making some serious changes, they might be the ones getting grounded.

But, but, but…

While Boeing’s execs are busy trying to fix planes with duct tape and figure out how to stop hemorrhaging cash, our Stocks.News alert on Wednesday skyrocketed to a +162.08% gain in under 24 hours. And yep, we called it. While Boeing’s juggling whether to patch up their debt or fix a door plug mid-flight, our premium members are too busy laughing all the way to the bank with those gains. Oh, and this is our fifth triple-digit winner in a row. We’re basically on fire.

So, why sit around watching Boeing’s financial drama when Stocks.News premium members are out here printing money week after week?

Do the math—if you’re feeling the vibe, upgrade to Stocks.News premium before the next alert drops. It's primed to be another winner, no doubt.

Until next time, stay sharp and keep racking up those gains!

Stock.News has positions in Amazon.