Boeing has changed course yet again. Seems like they’re facing some turbulence.
Boeing Company (NYSE: BA) had bad anti-stalling mechanisms in their two planes’ engines, which made them spontaneously nosedive. The first went down in October 2018, and the second on March 10th. After that fateful March weekend, as all of us were putting the pieces together, Boeing’s stock plunged from 440 points to 375, a loss of 15%.
Two weeks after the terror, March 22nd, Boeing finally bottomed out at 362, returning to the position it held in early January, as if there had been no growth or stock appreciation.
Boeing has since been crawling up, hitting 395 on April 4th, but this week’s bad news has caused it to swing back down again to 369 today. On that bad news, in the United States, Boeing 737 Max-8s have been grounded by the government and airlines. Further, Boeing’s foreign contracts have been delayed and even cancelled, and airlines will surely be less trusting towards its planes moving forwards. Boeing has also opened a gap for Airbus, its blood enemy, to deliver a right hook KO.
From my perch, it looks like the underlying strength of Boeing’s business model, size, and technological expertise make it a safe long-run investment. The 360s are not the resting price for Boeing, and its long-term financial history looks great. After all, Berkshire Hathaway was built on safe, steady companies, ideally offering dividends. I’ll stand by my man. Or by my plane, if need be.