Jim Cramer on AMD and Other Stocks

5. The Boeing Company (NYSE:BA)

Number of Hedge Fund Holders: 42

Discussing The Boeing Company (NYSE:BA), here’s what Cramer had to say:

“You know what’s really a shame? This session should have been just terrific, terrific because far away from housing and bonds and tech, we witnessed a miracle of capitalism when Goldman Sachs priced 112.5 million shares of Boeing at $143, that’s a more than 5% discount to where it closed the night before, raising $16.1 billion. It was the largest follow on deal since the federal government dunked its AIG stake back in 2012.. Boeing also raised a slug of money in the bond market, getting a total of $21.1 billion, enough to tie it over the company’s losing $1 billion a month.”

Cramer said that this achievement echoes a time from a few years ago, specifically during the height of the COVID-19 pandemic when the company issued $25 billion in bonds back in April 2020.

“Today’s equity offer means that Boeing’s viable again, there’s no longer a chance that it becomes a ward of the state even if the striking machinist union continues to play a high-risk game of chicken with management over wages. Now that Boeing has enough money, it’s finally got the leverage against the union and that means there’ll be a deal soon. Once that happens, they can go back to making planes. They used to do that, they can do it again… One of the most pressing overhangs in this market has now been removed from the bears’ equation. Boeing stock’s free to go higher. It may be much higher if CEO Kelly Ortberg can execute. I love miracles of capitalism. This was one of them.”

Boeing (NYSE:BA) is an aerospace leader engaged in the design, development, manufacturing, sales, and servicing of a wide range of products, including commercial jetliners, military aircraft, satellites, missile defense systems, human space flight initiatives, and related services. On October 23, it released its third-quarter financial results, revealing a revenue of $17.8 billion, which was slightly below the $18.1 billion recorded in the same period last year.

Boeing (NYSE:BA) faced a significant increase in core loss per share, which deteriorated to $10.44 from $3.26 year-over-year. The decline is because of the various challenges currently confronting the company, including ongoing supply chain disruptions. A work stoppage involving the International Association of Machinists (IAM) has further complicated operational efficiency. Despite these obstacles, the company continues to maintain a substantial backlog of over $511 billion.