Why Is Boeing (BA) Stock Down Today?

Today, investors in Boeing (NYSE:BA) don’t have much to be happy about. Shares of BA stock are once again on the decline, keeping the longer-term one year chart for Boeing intact. Currently, the stock has given up more than 4%. Given its size, various indices are feeling the pain of this move.

image of a Boeing 737 max aircraft
Source: Marco Menezes / Shutterstock.com

As many investors know, Boeing in particular has been hit by a number of recent headwinds. First, there was the Covid-19 outbreak, which saw airlines all but completely halt their purchases. Then came higher fuel costs from a demand-driven boom following the pandemic. Plus, before the pandemic, Boeing was already embattled with various crash-related issues for its 737 MAX. This is perhaps the biggest and most pertinent headwind in investors’ minds right now.

Today, though, there’s yet another headwind hampering BA stock. Let’s dive into what investors are pricing in.

Air Force One Production Issues Hit BA Stock

Today, reports surfaced that various factory-related issues have disrupted production of Boeing’s new Air Force One planes. These issues took place earlier this year and appear to be linked to issues with delivering the presidential jets on time.

Reportedly, “production mishaps” risked damaging two Air Force One jets. These highly classified jets also appear to have been worked on by possibly unsuitable employees. According to a report from the Wall Street Journal, one employee “wasn’t properly credentialed” while another did not pass a drug test.

For a project of this importance, these sorts of production and personnel issues are likely to garner attention. What’s more — especially after the fatal crashes of Boeing’s 737 MAX and 737-800 jets — investors are rightly concerned about governance and oversight issues at the major U.S. plane manufacturer. Accordingly, many appear to be showing disappointment with their pocketbooks today.

Whether Boeing can iron out these issues quickly remains to be seen. However, right now BA stock appears to be under pressure. It will be a key stock to watch in the days and weeks to come.

On the date of publication, Chris MacDonald did not hold (either directly or indirectly) any positions in the securities mentioned in this article. The opinions expressed in this article are those of the writer, subject to the InvestorPlace.com Publishing Guidelines.

Chris MacDonald’s love for investing led him to pursue an MBA in Finance and take on a number of management roles in corporate finance and venture capital over the past 15 years. His experience as a financial analyst in the past, coupled with his fervor for finding undervalued growth opportunities, contribute to his conservative, long-term investing perspective.


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