Boeing Stock: Considers $10 Billion Capital Raise Amid Challenges

Boeing is contemplating a substantial capital increase of at least $10 billion to bolster its dwindling cash reserves, according to insider reports. This move comes as a response to ongoing crises, including flight bans, production limitations, and a current strike involving approximately 33,000 employees. The aircraft manufacturer's stock has already shed over 40% of its value this year, reflecting the company's precarious situation. Analysts estimate that Boeing burned through nearly $3.4 billion in cash during the third quarter, with the ongoing strike potentially adding monthly costs of around $1.5 billion.

Market Response and Future Outlook

The news of the potential capital raise has further pressured Boeing's stock price, with shares dropping 1.21% to $15.20 on the New York Stock Exchange. Experts suggest it could take at least a month before Boeing initiates concrete steps towards the capital increase, as management seeks to assess the full impact of the ongoing strike before approaching potential investors. Despite these challenges, Boeing recently secured new contracts from the U.S. Department of Defense valued at over $8 billion, which could provide some financial reprieve. However, the unresolved labor dispute continues to cast a shadow over the company's future, with analysts projecting a loss of $4.889 per share for the fiscal year 2024.