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Boeing shares crash amid safety concerns

Published 28/03/2024, 14:52
Updated 28/03/2024, 14:52
© Reuters.

CHICAGO - Boeing Co . (NYSE:BA) has experienced a notable decline in stock prices, following a series of aircraft incidents that have raised safety concerns and significantly increased public interest in the company's financial performance. Google (NASDAQ:GOOGL) searches for "Boeing stock price" spiked by 809% between March 10 and March 12, according to data from NoDeposit.guide, a no-deposit bonus guide.

The aerospace giant's shares have faced a turbulent period, with a 29% decrease since December 2023, now trading around $191 per share. This downturn is part of a broader five-year trend that has seen Boeing's stock price halve from nearly $400 to as low as $182 earlier this month.

Concerns were compounded by the results of a recent Federal Aviation Administration (FAA) audit of the 737 Max aircraft. Out of 89 tests conducted earlier this month, the 737 Max reportedly failed 40%, raising questions about the aircraft's safety and compliance standards. This model was previously grounded worldwide following two fatal crashes in 2018 and 2019 linked to the Maneuvering Characteristics Augmentation System (MCAS).

The public's waning confidence in Boeing is reflected in the surge of online searches not only for the company's stock price but also for terms such as "Boeing crash" and "Boeing incident." These searches saw increases of 127% and 611% respectively, within the same timeframe in March. Although there have been no recent crashes, the heightened search activity indicates a growing public scrutiny over Boeing's safety record.

The information for this report is based on a press release statement and data from Google Trends, Google Finance, and Forbes.

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InvestingPro Insights

As Boeing Co. (NYSE:BA) navigates through its recent turbulence, InvestingPro data shows a complex financial picture. The aerospace behemoth has a market capitalization of $117.06 billion, signaling its substantial presence in the industry despite recent challenges. Interestingly, while the stock has faced volatility, analysts have highlighted that Boeing's net income is expected to grow this year, which could signal a turnaround for the company.

InvestingPro data also reveals a revenue growth of 16.79% for the last twelve months as of Q4 2023, indicating that despite setbacks, Boeing has managed to increase its revenue streams. However, it's worth noting that the company's gross profit margin stands at 11.89%, reflecting the concerns about its weak gross profit margins mentioned in InvestingPro Tips. Additionally, Boeing's stock price has seen a significant decrease over the last three months, with a 26.27% drop in total return, aligning with the stock price decline mentioned in the article.

For investors looking for more insights, there are additional InvestingPro Tips available that could provide further clarity on Boeing's financial health and stock potential. These include observations on Boeing's status as a prominent player in the Aerospace & Defense industry and its stock price volatility. To access these insights and more, consider using the coupon code PRONEWS24 for an additional 10% off a yearly or biyearly Pro and Pro+ subscription at InvestingPro.

With Boeing's next earnings date on April 24, 2024, investors and analysts will be keenly watching for signs of recovery or further distress. The company's performance on this date will likely have a significant impact on investor sentiment and the stock's future trajectory.

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