Boeing Co.’s stock dropped 11% after cutting its jet-delivery target, validating skeptics who doubted Wall Street’s bullish outlook. The company now expects to deliver fewer 737 Max jets than planned and faces a $697 million loss in its commercial division. Analysts had previously been overly optimistic, with average price targets 40% above the stock price.
CEO Kelly Ortberg emphasized disciplined production ramping over meeting arbitrary deadlines. Despite regulatory approvals for new models and a Navy fighter contract, investor confidence remains fragile amid production delays and supply issues. The stock is now the most expensive in the Dow Jones Industrial Average, trading at 62 times estimated earnings.
Source: Bloomberg Markets · Summarized by HeadlinesBriefing