Boeing’s stock is facing a prolonged downturn, marking its longest losing streak since 2018. The aerospace giant’s shares declined approximately 2% in Friday’s trading session, contributing to a year-to-date loss of nearly 35%. This performance ranks Boeing as the second-worst performer among S&P 500 stocks in 2024, trailing behind insurance company Globe Life, which is under pressure from short-sellers.
The negative sentiment surrounding Boeing intensified following an incident involving an Alaska Airlines-operated 737 Max 9 plane, where a door plug blew out midflight. This event triggered a cascade of repercussions, including a Justice Department criminal probe and lawsuits from passengers. Notably, the recent downward trend in Boeing’s stock price has been characterized by a series of modest daily losses, none exceeding 2%. Rather than a significant drop, it reflects a continuous drip of pessimism from the market.
The current atmosphere mirrors a previous challenging period for Boeing, which faced scrutiny over a different issue with its 737 Max series following a fatal crash involving a 737 Max 8 aircraft shortly after takeoff.
Boeing’s Chief Financial Officer, Brian West, acknowledged the need for significant changes in response to the ongoing challenges. These changes are likely to come at a considerable cost, exemplified by Boeing’s recent $160 million compensatory payment to Alaska Airlines.
The company’s aircraft delivery rate has significantly decreased compared to previous months, resulting in customer dissatisfaction due to delays in receiving their orders. Some customers have even opted to turn to Boeing’s competitor, Airbus, which recently indicated its readiness to capitalize on the situation to maintain its dominance in the commercial airliner market.
Investors are eagerly awaiting Boeing’s next quarterly earnings report, scheduled for release in approximately two weeks, for insights into the company’s financial performance and future outlook amidst these ongoing challenges.