Billionaire hedge fund manager buys Boeing stock dip: should you?

Boeing (NYSE: BA) stock price has been toxic this year as the company moved from one crisis to another. It has crashed by over 32% this year, making it the worst-performing company in the Dow Jones Industrial Average. It has underperformed indices like the S&P 500 and Nasdaq 100.

David Tepper has bought the dip

Boeing has been a toxic wasteland as the company’s challenges continue. It has faced numerous issues and is now being sued by the Department of Justice.

As a result, the company has continued to lose its market share against Airbus. The company has also slowed its production and is now burning millions of dollars per month. 

The most recent results revealed that its revenue dropped by 8% in Q1 to $16.5 billion while deliveries dropped to 83 from 130 in the same period in 2023. In contrast, Airbus delivered 142 commercial aircraft while its revenue rose by 9% to over 12.8 billion euros. 

Boeing also made a big loss of over $355 million while Airbus made a net income of over 595 million euros. These results confirmed that Airbus is a stronger brand than Boeing, a move that has caused many long-term customers to consider jumping ship. 

Still, analysts are optimistic that the company will bounce back. The average estimate for the Boeing stock is $207.50, up from the current $179. Analysts like Stiffel, Susquehanna, Citigroup, and Deutsche Bank have maintained their buy rating.

Meanwhile, David Tepper, the founder of Appaloosa Asset Management, has bought the dip. This is notable since Tepper is one of the best hedge fund managers in the world. He has a net worth of about $20 billion, making him the second-richest manager after Citadel’s Ken Griffin. 

Is it safe to buy Boeing stock?

BA chart by TradingView

Boeing’s fundamentals are well-known as the company has continued moving from one issue to another. There is a likelihood that more issues will come out in the next few months as we have seen in the past. 

The stock failed to move above the key resistance point at $267.67 in December last year and March 2021st. It has formed a double-top pattern at that level. And most recently, the stock has formed a death cross pattern, where the 50-week and 200-week Exponential Moving Averages (EMA) cross each other.

The stock has also retested the crucial resistance at $177.35, its lowest swing in October last year. Therefore, I suspect that the stock will continue falling this year as sellers target the key support level at $112.99, its lowest point in June 2022.