What Do Boeing’s (NYSE: BA) Space Plans Mean to Investors?

Boeing has big plans for its space division. After five years of challenges, the company finally sent its first manned Starliner spacecraft to the International Space Station (ISS) this month. Although it did dock successfully, the Starliner was riddled with problems by the time it arrived. Thanks to a variety of leaks and malfunctioning thrusters, the Starliner’s return trip keeps being delayed as astronauts try to fix the problems.

Unfortunately for Boeing, Starliner isn’t the only game in town, or the most successful one. Rival SpaceX has reliably sent crews to and from the ISS 10 times over the past four years. Should the Starliner be unable to safely to return to Earth, it’s likely that NASA would turn to SpaceX for a rescue mission.

However, there is still time for Boeing to turn things around. If it can fix Starliner’s issues, it still has six more flights to operate under its original contract with NASA. What happens after the ISS is retired in 2030, though, is still anyone’s guess.

News Comes Among Controversy

The Starliner troubles couldn’t have come at a worse time for Boeing. Over the past few years, the company has been plagued by controversy in the wake of two fatal 737 MAX airplane crashes in 2018 and 2019. Those crashes were followed by issues with a door plug on an Alaska Airlines flight earlier this year. It seems that once proud Boeing simply can’t catch a break.

What The Analysts Are Saying

Boeing continues to struggle, with net losses of more than $350 million reported earlier this year. It’s also losing market share to Airbus, which has analysts worried. Now the difficulties with Starliner show that the company’s space division is in no position to bail out its troubled aircraft segment.

Still, it’s likely that Boeing will bounce back eventually. It’s a mature company with a strong track record of excellence. With a substantial backlog of airplane orders, there is room for it to turn around, even if its future doesn’t appear to reside in space. However, there is likely still volatility ahead as Boeing seeks to rebuild its reputation. Unless you’re a long-term investor who is comfortable with a lot of risk, it may make sense to wait for now.

Neither Lisa Fritscher nor Stocks.News have positions in this company.