Boeing Stock: These Are 4 Major Catalysts to Watch
A big decision is expected by July 7. A report from Reuters on Sunday night said that U.S. prosecutors think Boeing should be charged with a crime. This is because of problems related to two serious crashes back in 2021.
Interestingly, this report is a bit different from what the New York Times said on Friday. Their article claimed that the Department of Justice (DOJ) probably wouldn’t charge Boeing criminally.
Reuters also mentioned that the final decision hasn't been made yet. The DOJ might just extend the 2021 agreement and make the rules stricter instead. A decision is expected by July 7.
In other news, different reports say Boeing may soon buy Spirit AeroSystems. They might announce this deal very soon. This move could help Boeing have more control over its supply chain. Think of this like if a bakery decided to buy a flour factory to control its flour supply better.
Moreover, Boeing is also looking for a new Chief Executive Officer (CEO). However, finding the right person for the job is taking longer than expected. The Wall Street Journal mentioned this slow process in a recent article.
Though these three factors – the DOJ decision, the Spirit deal, and the CEO search – are significant, perhaps the most important event for Boeing's stock will be increasing the output of the 737 MAX airplanes.
Why Is 737 MAX Production Important?
The Federal Aviation Administration (FAA) has set a limit on how many 737 MAX planes Boeing can produce each month. This number is 38 planes. However, Boeing has been making planes at a much slower pace. In late May, Boeing's Chief Financial Officer (CFO) said they hoped to speed up production to 38 planes per month in the second half of the year. They wanted to see “material progress” by the end of June.
Whether Boeing has achieved this production goal will be a key point to watch in their Q2 earnings report next month. Earnings reports are like school report cards but for companies, showing how well they’ve done financially.
Key Takeaways
- DOJ Decision Expected by July 7: Whether Boeing will face criminal charges or stricter rules.
- Potential Spirit AeroSystems Deal: Expected announcement soon, which could strengthen Boeing's supply chain.
- New CEO Search: Taking longer than expected but crucial for the company’s future.
- 737 MAX Production: Increasing output to 38 planes per month is crucial for Boeing's stock performance. Watch their Q2 earnings report.
Stay tuned for these developments, as they could significantly impact Boeing's stock and future.
