Boeing stock faces turbulence as legal risks mount despite production gains
Boeing continues to face a confluence of legal and reputational challenges.
As of April 8, 2025, Boeing's (NYSE: BA) stock is trading at $138.86, marking a 1.66% increase from the previous session.
The stock has shown considerable volatility over the past 12 months, with a 52-week range between $132.79 and $196.95. The current price places it near the lower bound of this range, suggesting the presence of a solid support zone around $132. This level has been tested multiple times in the last few weeks, acting as a floor for price action and temporarily halting the downtrend.
Technical indicators show a bearish momentum, with Boeing trading well below both its 50-day and 200-day simple moving averages. The 50-day average stands at approximately $151.30, while the 200-day average is around $167.80, indicating prolonged weakness. The Relative Strength Index (RSI) hovers near 38, just above the oversold threshold of 30, which implies that the stock might be due for a corrective bounce. However, the lack of bullish divergence in volume suggests any short-term rally could be limited unless accompanied by a catalyst.
BA stock price dynamics (February 2025 - April 2025). Source: TradingView.
The MACD (Moving Average Convergence Divergence) remains in negative territory, with the signal line above the MACD line, confirming ongoing bearish momentum. However, the histogram is beginning to contract, signaling a potential shift in momentum if supported by external factors.
Market context
Boeing continues to face a confluence of legal and reputational challenges that have weighed heavily on investor confidence. The most pressing concern is a recent class-action lawsuit tied to the 737 MAX incidents, which claims Boeing misled stakeholders and jeopardized safety protocols in favor of profitability. Legal experts believe this case could result in significant financial penalties and further regulatory scrutiny. Additionally, Boeing is at risk of facing criminal prosecution for allegedly violating the terms of a $2.5 billion agreement with the U.S. Department of Justice.
Despite these setbacks, there are pockets of optimism. Boeing has secured multiple aircraft orders recently and is working to scale up production of the 737 MAX and 787 Dreamliner lines. Supply chain normalization and easing regulatory restrictions may provide tailwinds. However, these positives are tempered by lingering doubts about the company's ability to execute effectively while navigating its legal challenges.
Investor sentiment remains fragile. Many institutional holders have trimmed their positions in Boeing, awaiting further clarity on the company’s legal exposure and operational resilience. Market commentary suggests that until Boeing provides a transparent, credible pathway to resolving its legal entanglements and restoring production confidence, the upside will remain capped.
Price scenarios
Looking forward, Boeing’s stock is likely to trade within a volatile range until significant clarity emerges on both legal and operational fronts. If the $132 support level continues to hold, a technical rebound toward $145–$150 is plausible in the short term, especially if production updates show tangible progress.
On the downside, if the stock closes below $132 with high volume, the next key support lies at $120. A sustained move below this level would indicate deepening investor concerns and could spark a broader revaluation of Boeing’s future earnings potential.
Boeing's stock decline is driven by ongoing production and delivery delays, worsened by a $3.5 billion cash burn last quarter due to a two-month machinist strike. While manufacturing has resumed across key aircraft models, restoring operational efficiency remains a major challenge.
