Last year, Boeing took investors on a turbulent ride, with its stock dropping 75% of its value. The aerospace giant was shaken to the core a few times. First was the grounding of its 737 MAX, and then came the pandemic, which crushed demand for air travel.
This year, both issues seem to be resolving, and the company stock is slowly preparing to take off.
Let’s see what to expect from Boeing in 2021.
Bigger is no longer better.
The pandemic changed our lives in every aspect, including traveling. According to experts, airlines are focusing on domestic travel. Also, they are not expecting passenger traffic to return to its previous levels for years. That means there will not be as much need for the twin-aisle jumbo jets.
It is comforting news for Boeing knowing that its smallish, fuel-efficient jet is in demand.
Eventually, the airline companies will bounce back, and the demand for traveling will increase, at least on a domestic level. That will give Boeing a chance to take back its power.
Boeing stock is getting ready to take off.
The aerospace giant had a historically bad start to 2020, but apparently, the worst seems to be over. Boeing’s share price is slowly starting to rise in 2021, giving some hope to investors.
We should also remember that the aerospace giant is a top innovator among aerospace and defense companies.
Operating globally and reaching almost 150 countries, Boeing is one of the most important companies in the sector. Because of all that, both Boeing and its share price get significant attention.