The stock value of the Boeing airplane manufacturing company rose by as much as around 10% on the morning of Monday following the fact that Ethiopia, Indonesia as well as China gave orders to the airlines for grounding the Boeing’s 737 MAX 8 planes following the second time a crash occurred which involved the jets in the last five months.
A Boeing 737 MAX 8 which was headed towards Nairobi, that was operated by an Ethiopian Airlines had been involved in an accident a couple of minutes since the airplane took off from the Addis Ababa a day before, all 157 people who were one board lost their lives. Exactly this particular plane resulted in the loss of 189 people back in the year 2018’s October in the coastal area of Indonesia, the plane was owned by the Lion Air Corporation.
In a research note that was referred to the United States Federal Aviation Administration, the analyst at the Cowen and company, Mr. Cai von Rumohr said: “The grounding of the 737 MAX by China, Indonesia, and Ethiopian are near-term reputational negatives for Boeing that could impact sales, particularly if the FAA follows suit and also grounds the plane,”
The Boeing Company has started an investigation by itself about the crash of the Ethiopian airlines which killed 157 people. The share value of the firm faced a decrease to as low as around 365.55 US Dollars during the morning before it quickly re-bounced back as the investors reacted according to this steeper fall in the prices.
The most recent press release about the 737 MAX 8 airplanes showed that the firm faced a fall in the prices of their shares. Almost 19 out of the 24 of the analysts at The Wall Street labeled it as a “buy” while the rest of them gave it a hold rating. Last time this had happened was back in the month of July 2017. Despite the fact that the stock value fell, the Boeing Company still is the best performer of the year according to DOW.