Yahoo Finance Why Did Boeing (BA) Stock Pop on Monday?
Shares of Boeing BA climbed nearly 2.5% on Monday as it looks to buck a nearly month-long downturn fueled by tariff-related woes and possible Chinese retaliation. Aside from reports that these potentially devastating headwinds might have been overblown, some substantive Boeing-related news helped push the stock higher today. Let’s take a look.
Startup Investment
Boeing just announced that it was part of a $15 million Series A investment round for Australian Internet of Things startup, Myriota.
Myriota’s direct-to-orbit platform can enable more effective, lower cost connectivity for IoT applications across a range of industries, from logistics to defense, in relatively off-the-grid areas.
“Myriota's technology influences how we think about space-based communications and connectivity in remote locations,” vice president of Boeing HorizonX, Steve Nordlund, said in a statement.
The aerospace giant made this investment through its venture capital leg, Boeing HorizonX. Boeing’s Myriota investment marked its first outside the U.S. and its 10th since the company launched the fund last April.
Potential American Airlines Deal
Last Friday, Reuters reported that American Airlines AAL ended its negotiations with Airbus EADSY to purchase a large number of aircraft. Europe-based Airbus noted that it was simply unable to meet or match the price Boeing offered for comparable planes.
American is reportedly looking to purchase roughly 30 new wide-bodied aircraft, which could value any potentially deal with Boeing at roughly $8 billion.
Dreamliner Delivery
Boeing delivered its first 787-10 Dreamliner to Singapore Airlines on Sunday. This is hardly an insignificant move as the company has banked a large portion of its future on the Dreamliner class of aircraft, of which the 787-10 is the largest of three planes in terms of length and passenger capacity.
The aircraft reportedly costs roughly $325 million and is the latest and final—at least for the time being— model of the Dreamliner series, which debuted in 2012.
Virtual Reality
The last piece of Boeing news that might have helped lift investor confidence comes in the form of a National Safety Council recognition. Boeing joined Accenture ACN and Brigham Health Sleep Matters Initiative as a 2018 Green Cross for Safety Innovation Award Finalist.
Boeing cracked the list for its use of virtual reality technology to help engineers with real-time interactive simulations of build processes and service tasks. The VR allows the design team to “experience those tasks from the perspective of a production mechanic or airline maintenance mechanic and identify issues before they become a safety concern.”
The National Safety Council noted that Boeing has developed 11 different virtual reality systems so far, and plans to add three more in 2018.
Bottom Line
Boeing is a Zacks Rank #1 (Strong Buy) and also currently boasts an “A” for Growth in our Style Scores system. On top of that, Boeing stock comes at a discount compared to where it was just a few months ago, as its stock price sunk nearly 10% over the last four weeks alone.
Now might not be a bad time to buy Boeing stock, especially when considering the latest company-related news that could propel further growth.
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