Boeing Stock Plummets 3.7% Amid Caution Over 737 MAX Production

Boeing's stock price plummeted by 3.7% on Wednesday, closing at $201.96 after reaching a low of $197.01. The company traded approximately 12.8 million shares during mid-day trading, which is a significant increase of 94% from the average daily volume of 6.6 million shares.

In a positive sentiment boost for Boeing, Korean Air finalized an order for 103 aircraft valued at around $36.2 billion. This deal includes 777-9 wide-body jets, 787 Dreamliners, and other commercial airplanes that will provide long-term backlog visibility for the company.

Boeing is also close to finalizing a delayed order for 150 737 MAX jets from Turkish Airlines, which would be another significant sale after a dispute involving engine maintenance. Additionally, the Pentagon increased the potential ceiling of Boeing's KC-46 Pegasus contract to $19.1 billion and expanded it to foreign military sales, improving long-term defense revenue visibility.

However, some analysts remain cautious about Boeing's delayed 737 MAX production ramp, which raises concerns about deliveries, cash generation, and the company's ability to convert its strong backlog into profitable results.