Boeing’s stock took another fall on Tuesday as the list of countries grounding its 737 Max 8 plane grew after a tragic and deadly crash in Ethiopia. So far, approximately $25 billion US has knocked off the market value of the world’s most significant aircraft maker.
Britain and the entire European Union joined in with China, Australia, Singapore, Malaysia, and other countries in the ban against the 737 Max aircraft; piling even more pressure on the stock market’s annual performance. As of now, the US has no ban on the 737 Max, but there have been whispers that some of America’s largest hubs are going to forbid the aircraft from landing at their airport.
Multiple well-known airlines in numerous other countries that haven’t banned the aircraft have had to cancel flights using the Boeing 737 Max 8 plane to transport their customers.
American Airlines and Southwest Airlines are amongst two US airlines that were exposed to the aircraft the most, and the companies watched their shares fall more than two percent. Boeing shares fell to $375.40 after a 6.1% plummet, which adds to the five percent decline that Boeing saw on Monday.
Shares in Boeing have delivered total returns, including any reinvested dividends, equaling more than four times the performance of its index since stocks in the US started rebounding during America’s 2007-2009 financial crisis.
DZ Bank was the first brokerage in almost two years to put a sell rating on Boeing’s stock and set a price target of $333—making it the lowest on Wall Street.
The United States has also demanded that Boeing implement design changes to the model by April to ensure no further grounding of the aircraft.
Boeing has continued to defend its aircraft and has publicly claimed that it has complete confidence in the safety of the model. Safety analysts have stated that it is too early to make any speculations on what was the cause behind Sunday’s deadly crash. Presently, black box recorders have yet to yield the cause.