Why The Boeing Company (BA) Is Plunging So Far in 2025?

Insider Monkey
08 Mar

We recently published a list of  Why These 15 Big-Cap Stocks Are Plunging So Far in 2025. In this article, we are going to take a look at where The Boeing Company (NYSE:BA) stands against other big-cap stocks that are plunging so far in 2025.

The market has been reversing its gains earlier in the year, so much so that the S&P 500 is now down 1.5% year-to-date. The past two years have seen the same index post stellar gains back-to-back, and those gains were mostly spearheaded by big-cap stocks.

However, historically speaking, the market delivering a third year of such returns would be unprecedented. Investors believe that 2025 will likely be a year when the market starts to cool off, and recent events have started a trend toward just that.

Big-cap stocks are now leading the way down as tariff and AI-related fears hurt them the most. Many big-cap companies have invested significantly in these tech trends, which investors have now soured on.

Still, it’s a good idea to keep an eye on the big-cap losers year-to-date. Many of them have declined enough to open up buying opportunities.

Methodology

For this article, I screened the worst-performing big-cap stocks year-to-date.

I will also mention the number of hedge fund investors in these stocks. Why are we interested in the stocks that hedge funds pile into? The reason is simple: our research has shown that we can outperform the market by imitating the top stock picks of the best hedge funds. Our quarterly newsletter’s strategy selects 14 small-cap and large-cap stocks every quarter and has returned 373.4% since May 2014, beating its benchmark by 218 percentage points (see more details here).

A commercial jetliner parked at an airport, reflecting the companies success in aviation.

The Boeing Company (NYSE:BA)

Number of Hedge Fund Holders In Q4 2024: 103

The Boeing Company (NYSE:BA) makes commercial airplanes.

The stock is down significantly so far in 2025 due to newly imposed tariffs by the Trump administration on imports from Mexico, Canada, and China. These tariffs raised costs for Boeing’s global supply chain and reduced its competitiveness against Airbus.

Airbus is not subject to Trump’s tariffs. On the other hand, the 25% levy on imports from Mexico and Canada will cause Boeing’s expenses to go up. China is also being slapped with two rounds of 10% tariff hikes.

In addition, Boeing announced a halt in deliveries of its Pegasus refueling tankers due to cracks discovered during inspections.

The consensus price target of $195.16 implies 22.64% upside.

The Boeing Company stock is down 10.23% year-to-date.

Overall, BA ranks 12th on our list of big-cap stocks that are plunging so far in 2025. While we acknowledge the potential of BA as an investment, our conviction lies in the belief that some AI stocks hold greater promise for delivering higher returns and doing so within a shorter time frame. If you are looking for an AI stock that is more promising than BA but that trades at less than 5 times its earnings, check out our report about the cheapest AI stock.

 

READ NEXT: 20 Best AI Stocks To Buy Now and Complete List of 59 AI Companies Under $2 Billion in Market Cap

 

Disclosure: None. This article is originally published at Insider Monkey.

Disclaimer: Investing carries risk. This is not financial advice. The above content should not be regarded as an offer, recommendation, or solicitation on acquiring or disposing of any financial products, any associated discussions, comments, or posts by author or other users should not be considered as such either. It is solely for general information purpose only, which does not consider your own investment objectives, financial situations or needs. TTM assumes no responsibility or warranty for the accuracy and completeness of the information, investors should do their own research and may seek professional advice before investing.

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