Boeing was ripe for a pullback even before Thursday's reveal of a delivery halt for one of its planes, according to traders on CNBC's " Fast Money ." The Federal Aviation Administration told CNBC on Thursday that the aerospace giant had temporarily halted deliveries of its 787 Dreamliner. That will likely put pressure on the stock while the issue is being resolved, said "Fast Money" trader Guy Adami. "People will sell first and ask questions later in this name because by not doing so in years prior they've been smoked. So that's what we're going to see here," said Adami, who is the director of advisor advocacy at Private Advisor Group. Boeing's stock has rallied in recent months, going from $121 per share at the end of September to more than $200 as of Thursday's close. That could contributed to a downside move, Adami said. "The stock probably got itself a little expensive as well. We're through earnings. My sense is you're going to start to see some analysts downgrade this, maybe on valuation. … I think it probably goes lower from this $202 level we're seeing right now," Adami added. In extended trading, shares slumped nearly 3% to about $202. BA 6M mountain Boeing has rallied since the end of September. Metropolitan Capital Advisors CEO Karen Finerman said that this type of problem likely wouldn't have moved the stock before the 737 MAX crashes in 2019 and subsequent production delays for Boeing, but now investors are more cautious with the stock. "Before that though, this would have been the kind of thing that would have been really nothing. I don't think the stock would move, and if it were down I think people would use it as an opportunity to jump in," Finerman said. "But given that they have to bend over backwards in every way possible, and given the run its had, I think it's sort of prudent to just wait if you want to buy some," she added.
Boeing is due for a pullback, says 'Fast Money' trader Guy Adami - CNBC
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Friday, February 24, 2023
Boeing is due for a pullback, says 'Fast Money' trader Guy Adami - CNBC
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