Boeing share price struggles after early week drubbing
Boeing’s share price continues to struggle after the companies stock suffered its largest two-day sell-off in over a decade. The world’s largest aeroplane maker has seen double-digit losses so far this week after one of its troubled 737 Max aeroplanes crashed in Ethiopia over the weekend killing one-hundred and fifty-seven people.
Yesterday, Boeing grounded its entire fleet of 737 Max aeroplanes, as the Federal Aviation Administration said new evidence, as well as newly refined satellite data, had prompted the decision to temporarily ban the 737 Max jets. Up until yesterday, the FAA had stated that there was “no systemic performance issues” and that there was no basis for grounding the 737 aircraft.
The European aviation authority had announced that it was banning the 737 Max from its airspace earlier this week, following similar announcements from Singaporean, Indian, German, Irish, British and French airspace. Boeing’s 737 Max model plane has been involved in two fatal incidents over the last five months, leaving the company with few choices but to ground the Max airline fleet until investigators gather further information.
The Boeing 737 plane is the world’s most-sold modern passenger aircraft in history and has been viewed as a reliable commercial plane for global airlines for decades. The company has confirmed that they currently have 4,661 new orders for the 737 model, with sales of 737 aeroplanes accounting for almost one-third of Boeing annual profit.
Analysts are quickly revising price forecasts for Boeing share price, as the recent accident is expected to hit the companies top and bottom-line profitability. Boeing executives said in its latest earnings call that approximately ninety percent of the 737 models delivered in 2019 are expected to be Max versions.
Boeing Daily Mountain Chart | Source: ActivTrader
Yesterday the aeroplane makers stock price fell to a fresh multi-low, although it made a slight recovery towards the end of the closing bell on Wall Street. Boeing’s share price is now within touching distance of its 200-day moving average, with the $293.000 level the most significant support area to watch if bears push the price below the $345.00 level.
Written by Nathan Batchelor, External Analyst
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