To The Moon

$Boeing(BA)$ recent news of pleading guilty to a criminal fraud charge stemming from the 737 Max crashes leaves me conflicted. Here's why.

The agreed-upon penalty – a $243.6 million fine and a $455 million investment in safety programs – amounts to a mere fraction of Boeing's annual revenue (nearly $78 billion in 2023). This feels like a slap on the wrist, failing to deliver the kind of justice many, including myself, crave for the victims' families.

Looking purely at the financials, the penalty seems insignificant. The combined $699 million represents less than 1% of Boeing's 2023 revenue. This minimal financial impact, coupled with the ongoing ascending price channel on the charts, suggests the stock price might shrug off this news in the short term.

This case feels particularly unsettling when compared to fines levied against other corporations. The EU's €4.3 billion fine against $Alphabet(GOOG)$ for anti-competitive practices seems much steeper. It raises a troubling question: are human lives valued less than market dominance?

Boeing's agreement to meet with crash victim families is a positive step, but one I fear might have the opposite effect. Will it provide closure or just reopen wounds?

Despite my moral outrage, as a trader, I have to consider the technicals. The ascending channel on the chart suggests the price could continue its climb towards $196. However, the market is unpredictable. If sentiment sours, a drop below $182 could signal a retest of the channel's bottom, potentially leading all the way down to $165-174 if failing to hold inside the channel.

Boeing's guilty plea feels like a hollow victory. While the stock price might not take a major immediate hit, the long-term reputational damage could be significant. For me, this is a situation where emotions and logic clash. The trade might hold some promise based on technicals, but the ethical implications are hard to ignore. Always do your own research before making any investment decisions, considering both financial and ethical factors.

Disclaimer: This is just my analysis of Boeing, and you should always do your own research before making any investment decisions.