Boeing Stock (NYSE:BA) Plunges Despite Big New Jet Order

Aerospace stock Boeing BA -3.90% ▼ is on the cusp of a huge new order from China, but despite this, investors seem a little concerned about whether or not the deal will go through. Despite the promise of a win measured in billions of dollars at the doorstep, Boeing shares still lost nearly 3% in Monday afternoon’s trading.

Claim 70% Off TipRanks Premium

• Unlock hedge fund-level data and powerful investing tools for smarter, sharper decisions

• Stay ahead of the market with the latest news and analysis and maximize your portfolio’s potential

President Trump, reports note, is set to hit Beijing for his first state visit since 2017. With that, Trump is also likely to make a big deal happen for Boeing, which reportedly measures about 500 aircraft total. That is narrowbody only, the reports further noted, as it will focus on 737 MAX jets. A separate order of 100 widebody jets, featuring a combined total of 100 787 Dreamliner and 777X jets, is also in the making, with plans to announce it later on.

It turns out these deals have been in the making for years, as Boeing and the various Chinese airlines have been in the talking stage for quite some time on these deals. If the deal goes off as expected, it will represent one of the single biggest sales of Boeing aircraft ever made. But it would not be the first time that President Trump has turned to Boeing products as a way to shore up trade agreements. However, reports note that the geopolitical backdrop is proving problematic, and may ultimately shut down the deal before it can officially launch. Similar agreements were in the works in 2023 and 2025, but never succeeded.

Liquid Robots Off to Japan

No, Boeing has not successfully developed a T-1000. It has, however, developed Liquid Robotics, which as it turns out, is a subsidiary of Boeing that just made a hefty sale in Japan. A contract was recently discovered that featured the United States Air Force buying a set of 20 “commercial unmanned surface vehicles” for delivery to Japan. The whole package was classified as a “Foreign Military Sale,” reports note.

Liquid Robotics offers one product so far: the Wave Glider USV. The Wave Glider is known as a “…low-observable, mobile platform that enables over-the-horizon surveillance with both surface and sub-surface payloads.” It can tow sonar systems to spot underwater threats, and has onboard sensors for land and air threats, making it a solid early warning package. Given the state of China these days, that may be what prompted the purchase.

Is Boeing a Good Stock to Buy Right Now?

Turning to Wall Street, analysts have a Strong Buy consensus rating on BA stock based on 13 Buys and one Hold assigned in the past three months, as indicated by the graphic below. After a 56% rally in its share price over the past year, the average BA price target of $276.36 per share implies 23.24% upside potential.

Disclosure

Disclaimer & DisclosureReport an Issue