I have just gotten into watching stocks and I am perplexed that Boeing’s stock is green with all the bad press they have been getting. I would think subpar plane quality and the mysterious death of a whistleblower testifying against them would be enough to tank the stock.
In: Economics
Because the millionaires and billionaire whales fly Gulfstream and Bombardier private jets.
To them, a Boeing 777 is a city bus and a 737 a peasent-driven rickshaw
It did tank the stock. It is down about 10% from March 7th and 30% from its year high. This is in a market where most stocks are approaching record highs.
If it is going up today, it is because the market thinks that the drop was a bit too much and it is correcting.
The whistleblower and plane quality issues are severe, don’t get me wrong, but Boeing is one of **two** major commercial airline manufacturing companies (Airbus being the other). There is no world where they are pushed to insolvency because it would create an effective monopoly. There will likely be serious restructuring and many senior leaders might be replaced, but Boeing itself is almost 100% guaranteed to continue as a company.
All the information you’re talking about is well known publicly and fully factored into yesterday’s price. If people believe there’s substantially more bad news to come, then they may have a negative view of the company and the value of its stock. But if they think all the bad news is out, then they may view current prices as a buying opportunity because they believe the stock is undervalued. It’s always hard to tell what the psychology of the market actually is, especially with respect to a particular company or stock.
They are down roughly 10% over the last week.
Trying to look at a very short window for a stock to see how it’s doing is like measuring rain one day in the summer and saying whether or not there’s a drought. Short patterns are not related at all to the long term patterns.
One important thing is people betting on Boeing bouncing back, and so they’re willing to buy at an amount that is at or near a low point and expecting it to go back up to the “typical” value. That typically prevents stock prices for “too big to fail” businesses from going too far down.
The green jump you see is quite literally from folks saying “oh they killed a whistleblower? Well it can’t go any lower than that I gotta get in on this” and buying some of the stock.
Boeing will not go away, they still have a giant portion of the market share for commercial transport aircraft and other aircraft sales. It’d be like having Ford, Toyota, and Hyundai all evaporate at once and a lot of folks still being like “I ain’t buying no Chevy”
It’s a complete myth that the stock price moves are somehow aligned with how a company is doing at a particular time.
Go look at the stock price and change the view from the past 24 hours to the past month or past year. There was a jump this morning probably because a bunch of people figured, it’s dropped a lot so “buy low” mentality. While things are bad, it’s not completely unreasonable to think maybe Boeing will turn it around. And if someone believed that, buying when the stock is lower than it’s been would be a good idea from that point of view. I don’t have a crystal ball so I don’t know how things will turn out but… things definitely do not look good, but they’re one of the two big airline aircraft manufacturers and it’s very difficult for a start up to come in an challenge them without substantial government investment. So if the US government was push to stay in the game, it might make more sense to just force major changes at Boeing then start from the ground up.
It may be green from yesterday, but it’s still down substantially from where it was a month ago, which was substantially down from where it was in December.
I think maybe a few people saw the price take a nose dive and thought “mmm… Boeing went on sale.”
Then the price went “boeing!”
It is generally going down but obviously so many people are buying the dip following the recent news that it’s going up.
To add to what others have said. It’s technically green, well red now. But it’s flat. It was less than 1% or half a percent movement. Anything 1% or so it’s considered flat. And it can be that way on no news and head either direction.
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