What Happened?
Shares of aerospace and defense company Boeing (NYSE: BA) fell 4.6% in the morning session after the company reported a significant third-quarter loss driven by a nearly $5 billion charge related to another delay in its 777X jet program. The planemaker posted a net loss of over $5.3 billion, with the loss per share coming in much deeper than analysts expected. The main reason for the poor results was a $4.9 billion pre-tax charge on the widebody 777X aircraft. Boeing announced it had pushed back the first delivery of the long-delayed jet to 2027, a full year later than its previous goal. This latest setback extended the program's delays to seven years and brought its total related charges to nearly $16 billion, weighing heavily on the quarterly results.
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What Is The Market Telling Us
Boeing’s shares are not very volatile and have only had 7 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 7 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 18.1% since the beginning of the year, but at $203.03 per share, it is still trading 14.5% below its 52-week high of $237.38 from September 2025. Investors who bought $1,000 worth of Boeing’s shares 5 years ago would now be looking at an investment worth $1,406.
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