Home / Under $10 / Boeing Stock: What Next After Donald Trump Stuns Boeing Co?…
Airforce-One-300x195.jpg

Boeing Stock: What Next After Donald Trump Stuns Boeing Co?…

By Mukta Samtani BMS, MBA, PhD. Published : December 8, 2016

Airforce One
Photo:Joe Raedle / Staf / Getty Image

BA Stock to Face Pressure

First, it was the tweet by Donald Trump about Boeing Co (NYSE:BA) that stunned everyone. And now comes another piece of news that adds to the confusion over Boeing getting the Air Force One deal. BA stock gained 1.25% in the last session and closed at $154.14.

As per the latest media reports, Boeing CEO Dennis Muilenburg promised President-elect Donald Trump in a phone call Tuesday that the company will work to limit the cost of the new Air Force One after Trump threatened to cancel plans for at least two new presidential jets. They also discussed the overall importance of American manufacturing and Boeing’s continuing strong contribution and commitment to U.S. jobs. (Source: “Trump and Boeing CEO talk about threat to cancel Air Force One program,” CNNMoney, December 7, 2016.)

This is in response to the tweet by Donald Trump, threatening to cancel the Air Force One deal with Boeing Co over high costs.

After the call, this is what Donald Trump said in an NBC interview, “I spoke to a very good man yesterday, the head of Boeing, terrific guy, and we are going to work it out.” He further added that he is going to negotiate prices. “If we don’t get the prices down, we are not going to order them, we’ll stay with what we have.”

It appears that going forward, Boeing executives will have to maintain open communication channels with Donald Trump in order to avoid coming in his line of fire. The company had issued a formal statement earlier clarifying its position.

“We are currently under contract for $170 million to help determine the capabilities of this complex military aircraft that serves the unique requirements of the President of the United States. We look forward to working with the U.S. Air Force on subsequent phases of the program allowing us to deliver the best planes for the President at the best value for the American taxpayer.” Boeing spokesman Todd Blecher said in a statement. (Source: “Boeing Statement on Air Force One,” Boeing Co, December 6, 2016.)  

Boeing stock is hovering around its 52-week high of $154.31 and although the prospects of the company remain strong, BA stock may come under pressure to the prevailing uncertainty.

The Bottom Line on BA Stock

Boeing is not only a big exporter but also a large employer in the U.S. Boeing stock has been quite resilient since the win of Donald Trump as his policies are likely to increase military spending. And besides being a manufacturer of commercial jets, Boeing is also a major defense contractor and stands to gain from this increased spending.

This brings home the point that the company management will have to be more careful with Donald Trump, which may not have been the case earlier. Trump is outspoken and likes to deal with the companies directly. The direction of Boeing stock shall depend on the strength of the relationship between Donald Trump and Boeing Co.


Editor’s Note: Hi, Mukta Samtani here. If you enjoyed this article, you can get more of my opinions and commentaries in our popular daily tech letter, Profit Confidential. Published daily, it’s FREE! Join us when you click here now.


Source link


About admin

Check Also

investing-money-into-stock-market-2022-11-14-06-44-13-utc-scaled.jpg

Aehr Test Systems Stock Hits Record High on Strong EV Demand…

AEHR Stock Up 65% Since Start of 2023 Shares of Aehr Test Systems (NASDAQ:AEHR) recently ...

Leave a Reply

Your email address will not be published. Required fields are marked *

NFL Jerseys 2019