Why Shares of Boeing Are Falling Today
Shares of Boeing (NYSE: BA) continued their downward spiral on Wednesday, trading down more than 19% at the opening. The company faces serious questions about its liquidity and demand for new commercial aircraft, and investors are running for the exits.
Boeing was battling turbulence well before the COVID-19 coronavirus pandemic -- fighting to restore investor and airline confidence following the March 2019 grounding of its 737 MAX airplane. The company's outlook has grown worse as the outbreak has spread as global airlines are scrambling to trim schedules and cut costs, which includes grounding aircraft and deferring new orders.
The situation has led Boeing to seek U.S. government assistance; the company is seeking at least $60 billion in aid for itself and its suppliers. Boeing said it would use any liquidity support to make payments to suppliers to maintain the health of its supply chain for the time when demand returns.
Source Fool.com
