Boeing Chief Operating Officer Stephanie Pope said the company is considering selling $10 billion of new stock to offset the cash hemorrhage.
With S&P Global and Moody's reviewing Boeing's credit rating, a downgrade to junk status may be on the horizon, further complicating its financial future.
With S&P Global and Moody's reviewing Boeing's credit rating, a downgrade to junk status may be on the horizon, further complicating its financial future.
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NewsTranscript
00:00We do have some more news on Boeing.
00:02And if you had to guess if it's a good headline
00:05or a bad headline, where would you lean, Joel?
00:09Oh, man.
00:10Does it ever have a good headline?
00:12Is there ever a good headline?
00:14The stock goes up on the absence of news,
00:16and then headlines bring it back down.
00:17Then it goes up on the absence of news,
00:19and then headlines bring it back down.
00:21Then it goes up on the absence of news.
00:23And yes, I've just said this three times,
00:24and then the headlines bring it back down.
00:26Because that is a trade on Boeing.
00:27It pops up, and then headlines seem to inevitably
00:30bring it back down.
00:31If it ever had a good headline, maybe this could go somewhere.
00:33But holy mackerel, Boeing.
00:35What's the headline today, AB?
00:37Well, I was just going to say real quick
00:38before I get to the headline.
00:38There was one day, like a couple of months ago,
00:41where there was a positive headline.
00:42And we joked that, oh, just wait a day or two,
00:44there will be a negative one.
00:45And then it came out the very next day,
00:47the negative headline.
00:48So this headline is that Boeing's credit rating
00:53got lowered as this strike is going on.
00:55Boeing says, further negotiations
00:57do not make sense after striking workers bring down
01:00planemakers' credit ratings.
01:02So this strike seems like it's not.
01:05There's no resolution in sight.
01:06The company's credit rating got lowered.
01:08So stock is trading down $2.50, 1.6%.
01:13And you're now approaching that $150 level here in Boeing.
01:19So either way, just more continued bad news in Boeing.
01:23The strike has not been resolved.
01:26Doesn't look like a resolution is in sight.
01:28I mean, I was just going to say, I mean,
01:33it's kind of trying to form a bottom here.
01:36I don't know if I've said this.
01:37I'll give it to you, $150.
01:38Yeah, I mean, if you want to stick your neck out here,
01:42I mean, it usually tops out a little bit, gives you three.
01:47But that's it.
01:48I mean, it's down on a headline.
01:49Actually, a good headline for them
01:52is really not as bad of a headline, but it's not.
01:56I was going to say, I'm a glass half full guy.
01:59I haven't seen any headlines about doors flying off
02:02or wheels flying off recently.
02:03Yeah, that's pretty good.
02:04Yeah, it's pretty good.
02:05I don't know, parts have fallen off the planes in the sky
02:07lately, so that's good.
02:08I mean, it's such a snowball effect here,
02:11where when you've got employees striking,
02:15I'm sure a lot of these employees, some of the execs
02:18but some of them have stock.
02:21A lot of employees have stock in the company.
02:23When the stock is in the gutter, like it is,
02:26you're probably saying, I don't really want stock.
02:29What we want is more higher pay here,
02:31because the stock that you've given us is trash.
02:34So it's like a snowball effect, and then the higher pay comes
02:36and the stock goes lower.
02:37I mean, this is why Tesla, you don't see Tesla workers,
02:42and obviously, the stock has done much
02:43for the last couple of years.
02:44Maybe that starts, but so many people
02:46made so much money off the stock over the years
02:49that they don't maybe need as high of a pay
02:52as at Ford and GM, which stocks,
02:54Ford's just been in the gutter for a long time here.
02:57So I mean, Boeing here, it's just like, I don't know.
03:01What's the resolution here?
03:03They settle this strike and everybody gets
03:05a hell of a lot more pay,
03:06and they're gonna make less money.
03:08I mean, it's just, it's a real troubled company here,
03:12and the turnaround has just been forever,
03:14and I still don't know if we're close to the end of it.