Boeing Ready for Takeoff
By Thu, Jul 1, 2021
Hey Scoopers,
Although bearish sentiment dominated the market recently, the stock markets ended 2021’s first half on a positive note. — More on that in the “Overall Market” section.
Beyond the overall market, a streaming device company closed a deal with a new streaming service that could bring large premiums with it. Meanwhile, a military drone company disappointed investors with its revenue. — More on that in the “What’s Up?” and “What’s Down?” sections.
By the way, Boeing is ready for takeoff. — More on that in the “Water Cooler” section.
But, first, here is a recap of what happened in the market yesterday:
Market Recap
- U.S. markets: The stock market ended mixed on Wednesday. Scroll down to the “Overall Market” section to read more.
- Cryptocurrency: Bitcoin‘s price decreased to $34K per coin.
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First Half Ended
The stock market ended the month in the green zone while finishing Wednesday with mixed results.
Although the Nasdaq index interrupted its streak of positive returns, the S&P 500 gained points for the fifth consecutive session. As the first half of 2021 ended yesterday’s session, the index marked a 14.4% increase since the beginning of the year. Furthermore, the 10-year Treasury bond yield hit a year-to-date peak of 1.77%.
Expensive Premiums
So, what happened?
Shares of Roku (Ticker: ROKU) were up by more than 4% on Wednesday. Although the streaming device company didn’t announce any new deal or partnership, Roku updated its high-end media-streaming device. The new control has an AppleTV+ shortcut, which investors believe Apple (Ticker: AAPL) paid a fee to have its shortcut on Roku’s remote control. Furthermore, it seems that the contract has a larger fee than Roku’s older streaming system. Investors are excited about the possibilities in this potential partnership.
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Not Much Revenue
So what happened?
Shares of AeroVironment (Ticker: AVAV) were down by more than 8% on Wednesday. Although the company is not a household name, it produces crucial mid-sized drones for the U.S. Army. Contracts with the government can grant large stable revenues for companies. However, AeroVironment’s revenue came in at $136 million against a $147 million analysts’ consensus. Despite bringing a lower revenue, it closed two deals valued at more than $400 million.
Boeing Ready for Takeoff
So what happened?
United Airlines (Ticker: UAL) ordered another 200 units of Boeing’s (Ticker: BA) 737 MAX jets to its order book. After the 737 MAX’s long grounding due to problems with its MCAS system, Boeing encountered more problems when the COVID-19 pandemic soared order cancellations for new airplanes. However, the airplane manufacturer prepared a strong backlog when travels came back to normal. The order grows Boeing’s reliance on long-term revenue from orders as it would deliver the planes in 2021, 2022, 2023, and beyond. Analysts believe the average cost per plane would be $46 million, granting a large income for Boeing during the upcoming years.
Although facing multiple engineering problems in the past few years, it seems that Boeing has found its way back up.
If you have any questions, or suggestions let us know by emailing us at members@tradestocks.com. We look forward to hearing from you.
About the Author
Felipe Nebesnyj is an Economics student who is passionate about the stock market and investing in the market. Originally from Brazil, he is working and studying in the U.S. and started learning about and researching the stock market at 16. Before joining Stock Card, Felipe worked on multiple stock market research projects that gave him the necessary knowledge and confidence to put into his stock market analyst career at Stock Card. Last but not least, he is an excellent violinist and enjoys video games.
