BA Stock Today: January 07 – Alaska’s 110-Jet Order Lifts Demand Outlook
Boeing stock edged lower to $228.13 today after Alaska Airlines placed its largest order: 105 737-10s and five 787-10s, plus 35 options, with deliveries through 2035. The move signals confidence in 737 Max 10 certification expected in 2026 and gives BA firmer demand visibility. With FAA oversight of output still in focus, this contract supports the production ramp under CEO Robert K. Ortberg and could steady sentiment into earnings on January 28. We outline implications for cash flow, targets, and trading levels.
Alaska’s 110-Jet Deal: Demand Visibility Through 2035
Alaska Airlines placed 105 737-10s and five 787-10s, plus options for 35 more, securing deliveries through 2035. It is the carrier’s largest order. The commitment centers on the 737 Max 10, with service entry tied to certification expected in 2026. The airline cited network growth and fleet simplification. For Boeing, the deal extends production visibility across the next decade. Read the carrier’s release. source
The order strengthens Boeing’s narrowbody narrative while adding a modest widebody lift. It supports the production ramp under CEO Robert K. Ortberg and offers a sentiment boost as FAA oversight on output remains a key watchpoint. Extended delivery slots also help smooth capacity planning and parts sourcing with suppliers. For investors, the multi-year flow reduces headline risk tied to near-term order timing.
BA Stock Snapshot and Street View
At $228.13, boeing stock fell 0.74% today, trading between $227.50 and $230.96. The 52-week range is $128.88 to $242.69. RSI at 75.98 and MFI at 85.47 flag overbought conditions, while ADX at 40.80 suggests a strong trend. Price sits near the Bollinger upper band at $231.05. The 50-day average at $203.37 offers a reference support if momentum cools.
Street views are constructive: 18 Buy, 3 Hold, 1 Sell. The average target is $242.81, with a median of $255, high $280, and low $150. Next catalyst is earnings on January 28, 2026. Consensus implies modest upside from today’s price, but execution, cash generation, and regulatory updates will guide the next leg.
Key Watchpoints: Certification, Cash, and Oversight
The Alaska Airlines order assumes 737 Max 10 certification in 2026. That timing is central for delivery schedules, revenue recognition, and fleet plans. Any change could shift mix or delivery timing and affect margins. Today’s agreement signals customer confidence, which matters for supplier commitments and production planning heading into 2027.
Financials remain the swing factor. Free cash flow per share is -$6.33 and operating margin is -10.37%. The current ratio is 1.18, while days of inventory sits near 377, highlighting working-capital needs. FAA oversight may pace output increases. For boeing stock, sustained cash improvement and cleaner inventories are vital to support valuation and debt reduction.
Longer-Term Demand: 787 Dreamliner and Mix
Alaska added five 787-10s, pointing to long-haul needs later in the decade. Widebody slots are valuable, and steady international demand can support pricing and services revenue. The larger order also deepens customer ties across both narrowbody and widebody families, a plus for lifecycle economics. See coverage for context. source
A healthier mix, including 787 Dreamliners, can lift average selling prices and aftermarket revenue over time. Still, investors should weigh certification timing, FAA oversight, and cash usage. If execution improves and deliveries accelerate, boeing stock could justify consensus targets. Misses on certification or production would likely cap multiple expansion.
Final Thoughts
Alaska’s record order gives Boeing multi-year demand visibility and a customer vote of confidence in the 737 Max 10’s 2026 certification path. Near term, we expect sentiment to track execution: production quality under FAA oversight, delivery cadence, and cash flow trajectory. Traders should note overbought signals near the Bollinger upper band around $231 and resistance near the $242.69 high. Medium term, earnings on January 28 and any updates on certification and output rates are key. Longer term, added 787-10 demand supports mix and services revenue. For investors, a balanced plan is to scale in on pullbacks toward moving averages while monitoring cash improvement and regulatory milestones that can sustain upside in boeing stock.
FAQs
Is Alaska Airlines’ order positive for Boeing stock?
Yes. The 110-jet commitment, plus 35 options, extends delivery visibility through 2035 and signals customer confidence in the 737 Max 10 path. It supports the production ramp and can stabilize supplier plans. While near-term quality oversight remains key, the order strengthens the multi-year demand story that underpins valuation.
What does 737 Max 10 certification mean for investors?
Certification expected in 2026 unlocks deliveries, revenue recognition, and cash inflows tied to the Max 10 backlog. It also validates the product roadmap with airlines. Any delay would affect schedules and margins. Investors should watch regulatory updates and commentary on testing progress during earnings and industry conferences.
Is boeing stock overbought after today’s move?
Momentum is strong, but signals look stretched. RSI is 75.98 and MFI is 85.47, both overbought. Price is near the Bollinger upper band at $231.05. That setup can invite short-term pullbacks. Medium-term trend remains constructive if price holds above rising averages and execution improves into earnings.
What near-term catalysts should BA holders watch?
Focus on the January 28 earnings report, FAA oversight updates on production, and any detail on 737 Max 10 certification timing. Watch delivery totals, cash flow guidance, and supplier commentary. Price reaction around the $231 band and the $242.69 high can also frame risk and potential breakouts.
Disclaimer:
The content shared by Meyka AI PTY LTD is solely for research and informational purposes. Meyka is not a financial advisory service, and the information provided should not be considered investment or trading advice.
