Boeing shares fall for a second day as more countries ground 737 MAX 8 planes, knocking US$25 billion off market value
- Stock dropped 7 per cent to US$374 in midday trading, adding to 5 per cent decline on previous day
- Analysts covering the stock have made at least two downgrades and one price target cut in last two days
Boeing Co’s stock took another beating on Tuesday, knocking off more than US$25 billion from the aerospace manufacturer’s market value over the past two days, as more countries lined up to ground its 737 MAX 8 aircraft following Sunday’s deadly crash in Ethiopia.
Britain joined China, Malaysia, Singapore, Australia and other countries in banning the 737 MAX planes, squeezing the shares, which had been one of best performing stocks so far this year on the Dow Jones Industrial Average.
Boeing shares have delivered a total return – including reinvested dividends – of nearly four times the performance of the full index since US stocks began rebounding from the 2007-09 financial crisis.
The stock fell 7 per cent to US$374 in midday trade on Tuesday, adding to a 5 per cent decline on Monday. The losses set the stock for its biggest two-day percentage drop since June 2009.
Shares of US airlines were broadly lower in midday trade, with the S&P 1500 airlines index off 1.5 per cent.
