Hi. Recently bought 90 shares of Airbus @131 euro. I bought this as a safer part of my portfolio as I'm not expecting massive gains but feel it has a large moat and the potential to shine due to Boeings problems. Peaking in the 170s quite recently it's trading at quite a discount and a feel Airbus has a chance to improve margins as it can ask more for products whilst Boeing can't deliver on time and when it can doubts arise over quality issues. The current woes of Boeing won't show up as positives in Airbus results untill the aircraft are delivered and profits are booked. In my opinion this is a safe long term investment. What are your views?
Airbus buy now profit later?
byu/Fit-Falcon-2742 inwallstreetbets
Posted by Fit-Falcon-2742
18 Comments
If you’re so sure about Boeing that you’re making second degree trades, just trade Boeing.
Everyone familiar with Boeing and Airbus knows that Boeing has serious problems for more than 10years.
Profit oriented, neglected aviations’ security-first-philosophy, bad engineering choices across the board, faulty certification processes, and much more.
One would think the only competitor of this shitty company would easily take over!
Yet Airbus did not get any advantage over the airplane market in this time, they are simply unable to come out on top while their main competitor is shitting its pants every night.
And the reason is simple.
Shitty management and high interference from politics – it may seem like a normal company, but it is permeated with school-drop-out-looser politicians.
They literally produce their parts like fuselage, electrics, wings, everything, all across Europe and ship it with big costs to Toulouse to craft them together – in the name of European friendship. No company with a little sense of profit would do this shit. They had to develop the A600 Beluga to transport fuselages across Europe for this nonsense – and while many cargo companies YEARN for this plane, Airbus is not selling it to anyone.
Airbus lost its path, its vision. Literally the only thing they are still able to do is produce good civil aircrafts.
The other things? USELESS!
Ariane 6?
15years, billions down the drain, to develop a rocket that is not competitive to SpaceX – not even close to it.
Military aircrafts?
Noone buys their shit, not even Europe itself. Because outdated technology, yet no new development.
Also PE of like 30, for a company that has nothing on the table to increase revenue besides natural growth.
Also Backlogs of Boeing still roughly 10years. Same for Airbus. Their next years are completely sold out.
do they do AI? that s the only thing you need to ask yourself
Travelling recently in India every plane on 10 flights was an Airbus 320/321 and Neo.
Politics may be an EU issue but there is now compelling logic to Airbus, not so to the fog of Boeing manufacturing and obfuscation in its relationship with the NTSB.
Boeing sources include the manufacturer Spirit which also supplies Airbus. Issues are likely to be closer to its US home.
Sir this is a casino
Airbus is sold out of a320 slots until the end of the decade.
Single Aisle Airbus delivery rate is about 48 per month which is significantly higher than Boeing. As people mentioned in this thread, Airbus has its own set of problems but it’s nowhere near what Boeing is facing. I would invest in Airbus right now.
Both Boeing and Airbus need to get their shit together because China is gearing up to challenge them in about 10 years with COMAC.
Long term? Yes. Boeing will receive waivers, pay a fine and bsck to business as usual. Airbus has some chance down the road to surpass Boeing but it wont be blockbuster deals
Airbus is sold out. Unless they build another factory or something, they won’t gain much because they can’t process new orders
This isnt the place for sound advice, this is literally a casino.
r/investing and r/boring
Airbus also doesn’t (to my knowledge) have the government of the United States throwing money at it for defense purposes. Commercial aviation though will become increasingly dominated by airbus within the decade I imagine.
Just remember that it’s a French company.
ERJ has better potential as a Boeing counter-play than Airbus.
Imagine investing in low moat securities, it is like water found a gold for itself!.
Boeing’s backlog will shrink as orders diminish and cancellations increase.
Just wait till Space-X has to rescue the astronauts.
This should enable Airbus to gain market share.
Expectations are high yet Airbus is unable to make more money- they simply cannot produce more planes. In fact, we keep getting excited by new orders and yes their competition is in bad shape, but revenues keep falling short of expectation. I was excited about this stock, continue to hold it, but see little reason for optimism in next few months.