Oct 28, 2024 - Economy
Charted: Boeing launches stock sale
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Boeing launched a roughly $19 billion share sale today.
The intrigue: The aerospace giant's stock lost around 2.8%, a fairly modest drop given the relative size of the offering (around $14 billion is expected to come from the sale of common shares).
- The company has shed over $63 billion in market value since mid-December — a 40% plunge — giving it a market cap today of $93 billion.
The big picture: The company is looking to shore up its balance sheet as it grapples with an ongoing worker strike that has grounded production of its best-selling planes.
- Investors have viewed a stock sale as a favorable way to raise cash, as opposed to adding to its $58 billion pile of debt.
What we're watching: The company is doing everything it can to maintain its crucial investment-grade credit rating.
