Why Boeing Stock Fell in July
Shares of Boeing (NYSE: BA) lost 13.8% in July, according to data provided by S&P Global Market Intelligence, with most of the damage done late in the month after the company released second-quarter earnings. Investors went into earnings season knowing not to have high hopes for Boeing, but the results highlighted what a difficult challenge the company has ahead of it.
Boeing shares have lost about half of their value in 2020, weighed down by the COVID-19 pandemic. Airlines are scrambling to cut costs in response to a dramatic slowdown in travel demand, and that means a need for fewer planes.
Boeing already had issues prior to the pandemic. It's 737 MAX has been grounded since March 2019 after a pair of fatal accidents, and payments to suppliers and customers related to the grounding had been eating into cash flow. For much of 2019, Boeing could fall back on sales of other models and revenue from its aircraft maintenance unit to cushion the 737 MAX blow, but the pandemic has left the company with few options.
Source Fool.com
