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What's interesting to me is that no matter how much bad news comes out about Boeing--and it hasn't stopped at all since the second 737 Max crash--stocks haven't
by fiblye 7y ago
What's interesting to me is that no matter how much bad news comes out about Boeing--and it hasn't stopped at all since the second 737 Max crash--stocks haven't really dropped much. They're still higher than they were a year ago.
Laymen have been led to think stock prices are linked to company performance. But witnessing this, I realize I have zero clue how the stock market works. I can't imagine anything Boeing could do that could actually cause their value to dip. I'm not sure if this is a flaw or a feature of the market.
- robjan 7y agoThe price is based on the future earnings of the company from now until forever which is one reason why companies have wildly different PE ratios. This is a short term problem but the commercial jet market is still basically a duopoly with a huge moat around it. Most carriers try to have a roughly half-half split between Airbus and Boeing in case any fleet gets grounded so, in the long term, Boeing will be fine.