What Happened?
Shares of aerospace and defense company Boeing (NYSE:BA) fell 3.8% in the afternoon session as investors focused on production delays and potential labor disputes despite reporting better-than-expected second-quarter revenue and a smaller loss. The company posted quarterly revenue of $22.7 billion and a core loss per share of $1.24, both beating analyst forecasts. However, positive sentiment was tempered by significant headwinds. Boeing announced that the certification for its new 777-9 and 737 MAX 7 and 10 models was delayed until 2026, a notable setback.
Adding to investor concerns, workers rejected a new contract, raising the possibility of strikes that could disrupt production. These developments overshadowed the improved jet delivery numbers, as analysts had already been revising their earnings expectations downward prior to the report.
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What Is The Market Telling Us
Boeing’s shares are not very volatile and have only had 9 moves greater than 5% over the last year. In that context, today’s move indicates the market considers this news meaningful, although it might not be something that would fundamentally change its perception of the business.
The biggest move we wrote about over the last year was 4 months ago when the stock dropped 10.1% on the news that China imposed a 34% tariff on all U.S. imports amid escalating trade war tensions. This was partly in response to the "reciprocal tariffs" announced by the Trump administration the previous day, with levies on Chinese goods estimated to be as high as 50%. Already facing increased competition from domestic aircraft manufacturers, Boeing risked becoming even less competitive. Also, China has historically been a significant source of demand for Boeing's commercial aircraft, and the new tariffs could delay or derail future orders. For investors, this development raised concerns about Boeing's ability to regain momentum in a market essential to its growth.
Boeing is up 32.1% since the beginning of the year, and at $227.05 per share, it is trading close to its 52-week high of $236.41 from July 2025. Investors who bought $1,000 worth of Boeing’s shares 5 years ago would now be looking at an investment worth $1,368.
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