EL SEGUNDO, Calif. - Boeing (NYSE:BA) [NYSE: BA] has announced plans for a 2026 launch of a satellite named Q4S, aimed at testing quantum entanglement swapping technology in space. This initiative, funded by Boeing, is a step towards the development of a secure quantum internet, which could revolutionize communication by connecting quantum sensors and computers globally.
Quantum (NASDAQ:QMCO) entanglement swapping is a phenomenon where information can be transferred between particles without physically moving them, a concept that was once described by Albert Einstein as "spooky action at a distance." Jay Lowell, Boeing's chief engineer for Disruptive Computing, Networks & Sensors, stated that the Q4S mission is intended to prove that such technology can operate in orbit and enable the creation of a scalable quantum network.
The Q4S demonstration will involve two entangled-photon pair sources within a spacecraft, with significant advancements contributed by HRL Laboratories, a joint venture between Boeing and General Motors (NYSE:GM) [NYSE: GM]. The satellite's mission aims to demonstrate the potential for quantum networks to transmit information over vast distances, overcoming current limitations due to decoherence and loss.
Boeing's efforts in quantum technology extend beyond research, with intentions to lead the operationalization and scaling of quantum technologies for global use. The company's Chief Technology Officer, Todd Citron, emphasized Boeing's pioneering role in pushing the boundaries of what is possible.
The aerospace giant, which serves customers in over 150 countries, continues to innovate in the fields of commercial airplanes, defense products, and space systems. Boeing's commitment to sustainability and community impact is reflected in its diverse team and core values of safety, quality, and integrity.
The information for this article is based on a press release statement from Boeing.
In other recent news, Boeing has updated its production goal for the 737 MAX aircraft to March 2025, marking a six-month delay from the initial target. This adjustment comes in response to challenges encountered in ramping up production. Despite facing additional safety scrutiny, Boeing remains committed to reaching its official production target of 38 jets per month by the end of 2024.
In labor news, Boeing has successfully negotiated a new contract with the International Association of Machinists (IAM) 751 union, averting a potential strike. The agreement promises a 25% wage increase for workers. Analyst firms including TD Cowen, Baird, Deutsche Bank, Jefferies, and Goldman Sachs have maintained their positive ratings for Boeing in light of this development.
Furthermore, BofA Securities has reiterated a Neutral rating on Boeing with a steady price target of $200.00. This follows a steady pace of deliveries in August and increasing momentum in September, as reported by Aero Analysis Partners/AIR (AAP/AIR).
Boeing's proactive measures to prepare for potential disruptions and its ongoing efforts to navigate labor negotiations and ramp up production highlight the company's recent developments. However, the company continues to face challenges, including technical issues with the Starliner spacecraft and ongoing engagement with the FAA regarding safety commitments.
InvestingPro Insights
As Boeing [NYSE: BA] gears up for the 2026 launch of its quantum entanglement swapping satellite, Q4S, the company’s financial health and market performance remain a point of interest for investors and industry observers alike. According to InvestingPro data, Boeing's market capitalization stands at approximately $97.5 billion. The company’s revenue for the last twelve months as of Q2 2024 is reported at $73.56 billion, with a slight decrease in revenue growth of -0.07%. This indicates a challenging financial period, with the company also facing a gross profit margin of 10.46%, which reflects some of the concerns about its profitability.
An InvestingPro Tip highlights Boeing's status as a prominent player in the Aerospace & Defense industry, a factor that could influence its ability to rebound and innovate despite current financial headwinds. Additionally, the company is trading near its 52-week low, which could present a potential entry point for investors believing in the long-term prospects of the company, especially considering its ventures into emerging technologies like quantum communication.
For those seeking deeper insights, there are 8 additional InvestingPro Tips available, which provide a comprehensive analysis of Boeing’s financial metrics and market performance. These tips can be instrumental in making informed investment decisions, especially in light of the company's ambitious projects and their potential impact on future growth.
Boeing’s next earnings date is scheduled for October 23, 2024. As the aerospace giant continues to navigate through its financial landscape, the upcoming earnings report could provide further clarity on the company’s trajectory and its ability to fund and support innovative projects like the Q4S satellite.
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