Boeing Stock Price Dips Immediately After Trump’s Air Force One ‘Cancel Order’ Tweet
President-elect Donald Trump took to his Twitter account this morning to declare his feelings about the pricetag of Boeing’s new Air Force One project. In doing so, he demanded that the manufacture cancel the order due to how expensive it was.
Boeing is building a brand new 747 Air Force One for future presidents, but costs are out of control, more than $4 billion. Cancel order!
— Donald J. Trump (@realDonaldTrump) December 6, 2016
Later on in the morning, Trump stopped briefly in the lobby of Trump Tower to speak with reporters. (A truly rare occurrence these days as Trump hasn’t held a press conference in over four months.) He explained that “the plane is totally out of control” and Boeing was taking advantage of the government.
“I think Boeing is doing a little bit of a number,” he said. “We want Boeing to make a lot of money, but not that much money.”
The Air Force budgeted $1.6 billion for the program, which would be for two replacement jets.
Well, it appears that Trump’s tweet had an immediate impact on the stock price of Boeing. According to CNBC, shares fell at the beginning of trading before rebounding somewhat.
Before Trump’s tweet, Boeing was trading at $152.16 a share. After the tweet, it fell, 1.6 percent to a low of $149.75 a share, according to FactSet. Within the first hour of trading, shares of Boeing were down about 0.5 percent.
What is even more interesting about all of this is that Trump disclosed in his May 2016 financial disclosures that he owned Boeing stock worth between $50,000 to $100,000. He also sent this tweet out in 2013 about purchasing Boeing stock when it was down in price, calling it a “great company.”
— Donald J. Trump (@realDonaldTrump) January 17, 2013
Regarding what has happened with Trump’s Boeing stock, his team says the incoming POTUS unloaded it all in June, shortly after the disclosures were released.
— Katherine Faulders (@KFaulders) December 6, 2016
Prior to today’s shift, Boeing’s stock price is up more than 5% on the year.
[image via screengrab]
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