Boeing Faces Questions About Its New 737 Max Jets After Ethiopia Crash – The New York Times
The short, deadly flight in Ethiopia may call for immediate action while investigators determine if there is a common thread, said Jim Hall, a former chairman of the National Transportation Safety Board.
“This matter has got to be addressed,” Mr. Hall said. “The possibility of grounding the aircraft would be one of many options I would assume the regulators and the investigators are looking at.”
Analysts agree that Wall Street is not going to be kind to Boeing stock on Monday. And whatever hit its shares take will weigh heavily on the Dow Jones industrial average, which in recent years has been lifted by Boeing’s success.
Shares of Boeing have tripled since the presidential election in 2016, making it the highest-priced stock in the Dow. From Nov. 8, 2016, through Friday, the Dow added more than 7,000 points, and Boeing’s rise accounted for nearly 30 percent of its gain.
Richard Aboulafia, an aviation analyst at the Teal Group, cautioned against reading too much into the immediate reaction in Boeing’s shares. “I’ve learned from bitter experience not to look at the stock prices in the aftermath of a crash,” he said. “It’s just all over the place.” Mr. Aboulafia also predicted that any pullback was likely to be a short dip, given the company’s recent strength.
At the close of trading on Friday, Boeing was valued at nearly $239 billion, with a stock price above $422 a share. The company, which employs about 150,000 people, took in just over $100 billion in 2018, with profit for the year topping $10 billion.