Can Boeing Get Out of Its Own Way?
Boeing has an impressive moat and a huge backlog. Now that the stock is down by 22%, is it time to step in?
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When we first purchased Boeing (BA) in January 2025, it was the most hated stock on Wall Street.Â
The trade was a variation of the “dogs of the Dow” strategy, first popularized by Michael Higgins in his 1991 book, “Beating the Dow.” Boeing lost 31% in 2024, a year that saw the benchmark S&P 500 gain over 23%.Â
By late January of 2026, Boeing reached $250 per share, a 45% gain from the start of 2025. Boeing was no longer hated, and there was no longer any reason to hold a contrarian position in the stock.
Software Glitch
Boeing traded at $240 as recently as August of this year. Since then, shares of the Virginia-based commercial airline manufacturer and military contractor have declined by 22%.
A software glitch is affecting new versions of the 737 MAX autopilot. This caused the Federal Aviation Administration to delay approval of the 737 MAX 10, the largest and longest aircraft of its category.
United Airlines (UAL) and Southwest Airlines (LUV) told Boeing they wouldn’t accept delivery of the affected 737 MAX aircraft until the situation is resolved. Boeing knew about the software glitch in November of 2024, but didn’t share its findings with the FAA until September of this year.Â
Finally on Solid Ground?
On Monday, Boeing closed at $184. It was the lowest closing price for the stock this year.
On the bright side, Boeing shares have now fallen into a price area that has proven to be a good entry point for the stock.
In November 2025, Boeing traded near $180 (point A). Within two months, the stock would climb above $250 (point B).Â
In March 2026, Boeing briefly dipped below $190 (point C). Within two months, the stock would rise above $240 (point D).Â
On Monday, Boeing traded as low as $184. Technically speaking, the stock appears to be in a sweet spot for a fresh long position.
Monday’s volume was the stock’s highest in over six months (arrow). This could be an indication that the selling in this stock is at least temporarily exhausted.
Bottom Line
As one of the two dominant commercial airline manufacturers, Boeing comprises half of a global duopoly. This creates a massive moat around the commercial side of Boeing’s business.
Then there is Boeing’s $715 billion backlog to consider, about $600 billion of which is in the commercial airliner category.
Boeing needs to correct its mistakes, report issues promptly and rebuild trust. The company has been operating for over 100 years. Boeing should be fine if it can get out of its own way.
At the time of publication, Ponsi was long BA.
