Boeing Shares Suffer Worst Two-Day Drop on Record
- Roughly 30% two-day drop is the largest ever for the stock
- JPMorgan expects Boeing to cut its dividend to free up cash
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Boeing Co. shares plummeted 14% to a three-year low on Thursday, alongside airline stocks, as the growing coronavirus crisis prompted a restriction on travel from Europe to the U.S. The news comes after Boeing said Wednesday it was planning to draw down the full amount of a $13.8 billion loan, sparking investor concerns about liquidity.
The stock has lost a record 29% of its value in the last two trading days. JPMorgan downgraded shares, saying a dividend cut may be in the cards while price targets were slashed across Wall Street. Despite that, some analysts said the two-day slide was an overreaction, and the company was not in a liquidity crisis, even though pressures are rising.