President Donald Trump’s recent diplomatic trip to the Middle East has earned him high praise for his efforts, but it is the substantial agreements reached with Boeing and GE Aerospace that have particularly thrilled investors.
This week, Boeing’s stock rose by 5.6%, while GE’s shares climbed nearly 8% following Qatar Airways’ monumental order of 210 widebody jets, the largest ever placed with an American manufacturer, valued at a remarkable $96 billion, as indicated by the White House.
In addition to the aircraft order, General Electric has expanded its partnership with Qatar, committing to supply 400 engines to power Boeing’s 777-9 and 787 aircraft.
AIR FORCE ONE VS. QATAR’S PLANE GIFT TO TRUMP
| Ticker | Security | Last | Change | Change % |
|---|---|---|---|---|
| BA | THE BOEING CO. | 205.82 | -0.36 | -0.17% |
| GE | GE AEROSPACE | 231.78 | +2.40 | +1.05% |
For Boeing investors, this substantial deal is believed to help stabilize the company, which has faced scrutiny over quality, safety, and production issues in recent times.
“Let the good times roll,” declared Jefferies analyst Sheila Kahyaoglu in a research note dated May 14, as reported by Seeking Alpha. She emphasized that Boeing is effectively sold out for the next few years, and in some cases, into the latter part of the decade.
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Boeing’s CEO, Kelly Ortberg, who assumed leadership in August and joined Trump on his diplomatic journey, underscored the significance of the deal, which is expected to generate 400,000 jobs. “All of these aircraft will be built in the United States, creating a significant number of jobs,” Ortberg remarked.
Also present during the trip, GE Aerospace CEO Larry Culp elaborated on the contract details, highlighting GE’s exclusive role as Boeing’s engine supplier. “Our GE NX, which powers the 787, is the fastest-selling high-thrust engine in history, and our new 9X will provide power for the 777X, which will be the largest commercial engine globally,” he stated.
Analysts express optimism regarding both companies, with data from ThomsonOne indicating that among the 29 analysts monitoring Boeing, 20 have assigned a ‘buy’ or ‘strong buy’ rating, while eight maintain a ‘hold’ rating and one suggests a sell. Similarly, GE Aerospace has 19 out of 21 analysts advocating a ‘buy’ or ‘strong buy’.
In terms of market performance, both Boeing and GE stocks are exceeding the S&P 500, which has recently risen by 1% this year after overcoming volatility brought on by tariffs.
Boeing’s shares have increased nearly 20% this year, while shares of General Electric, the parent company of GE Aerospace, have surged by 37%.
Following the landmark Qatar deal, the two corporations have also secured $14.5 billion from Abu Dhabi’s Etihad Airways for their 787 and 777X aircraft, according to announcements from the White House.
HOW BOEING BUNGLED AIR FORCE ONE CONTRACT
During his trip, Trump made headlines for discussing a delay in the delivery of Air Force One, simultaneously prompting him to accept a $400 million used 747 jet from Qatar as a gift. “They are very late with the plane,” Trump told Finance Newso News’ Sean Hannity.
Over the course of his week-long journey, Trump secured over $2 trillion in potential deals from allies in the Middle East.
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The agreements announced by the White House include a $600 billion investment commitment from Saudi Arabia, a $1.2 trillion economic exchange agreement with Qatar, $243.5 billion in commercial and defense deals with Qatar, and $200 billion in commercial agreements with the United Arab Emirates.
