Boeing Pricing Chart Since 2nd Quarter Earnings

Boeing fell on worries the company may stall production for the beleaguered 737 Max. The company cited concerns arising from the MCAS software being certified for a 4th quarter return to service for 737’s and to resume delivery’s. The company has run out of space to store the planes and it has been reported that an employee parking lot has been re-purposed as a storage area for non delivered 737’s. Boeing stock has dropped nearly 10% after they announced large accounting charges or impairments for liabilities related to the 737 Max groundings. The company lost $3.3 billion from operations in the second quarter. The company stated they may delay production of more 737 Max planes until they can time the delivery of current planes in storage. The company more than likely will get the plane off the FAA ground order by the 4th quarter and the company should resume delivering planes. The biggest strength to an investment in Boeing is their total backlog of $474 billion, including more than 5,500 commercial airplanes. Meaning customers have committed to purchase these planes and the company has nearly 5 years of sales in their pipeline. Airbus has been trying to steal Boeing customers with their A330 Neo offering, but hasn’t been successful in this effort as many airlines remain committed to using a Boeing ecosystem for their cockpit controls. The company lost $1 billion of cash during the quarter related to the 737; however, their balance sheet maintains an additional $10 billion of cash on hand to see the company through these tough times.

Do NOT follow this link or you will be banned from the site!