Boeing Fall by $ 26.6 Billion

The stock market of the airline Boeing BA after the crash of the newest model 737 Max 8 in Ethiopia dropped immediately by $ 26.6 billion. This is evidenced by data from the New York Stock Exchange (NYSE).

Before the crash, on Friday, the company’s share price was $ 422.5 and  $ 238.7 billion. Since the beginning of this week, after the plane crashed, shares fell to $ 375.4 and  $ 26.6 billion to $ 212.1 billion .

On Sunday, March 10, six minutes after take-off from Addis Ababa, the newest medium-haul Boeing 737 Max 8 of the fourth generation of Ethiopian Airlines crashed. All 157 people on board (eight crew members and 149 passengers, including three Russians) were victims of a plane crash. This is the second crash of this model in six months: on October 29, 2018 after the departure from Jakarta Boeing 737 Max 8 of the Indonesian airline Lion Air fell into the Java Sea, all 189 people died

On the first day of trading after the fall of the liner, Boeing shares plunged by 11% – this is the largest intraday decline in the company’s stock price since 2001, when the attacks of September 11 occurred.

In the short term, Boeing shares will be under pressure: the news background for the company is likely to continue to remain mostly negative in the coming weeks, says Sergey Deyneka, a financial analyst at BCS Premier.

Analysts do not see critical long-term risks for Boeing – the company’s business is fundamentally strong, well-diversified and has good prospects, emphasizes Deineka. The growth of air traffic will continue for many years, making Boeing one of the main beneficiaries of this trend, the analyst believes. At the same time, the company is actively developing its service business, unmanned technology and other promising areas, he adds.

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Boeing fall fell by $ 26.6 billion after a plane crash - /10

Summary

The stock market of the airline Boeing BA after the crash of the newest model 737 Max 8 in Ethiopia dropped immediately by $ 26.6 billion. This is evidenced by data from the New York Stock Exchange (NYSE).

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