The grounding of Boeing's BA beleaguered 737 MAX jet will continue through at least June 5th, according to American Airlines AAL . This announcement, made Sunday, amounts to roughly 90 flights per day at an as-yet unspecified cost to American. Boeing shares have fallen another 4% in today's pre-market.
Since the 737 MAX crash that claimed the lives of all aboard an Ethiopian Airlines passenger plan a month ago, Boeing stock
fell to sub-$400 levels. Historically, Boeing is still trading near its all-time highs even with these disruptions; in late 2016, the world's biggest airplane manufacturer saw massive gains in its share price as it took the lead from European rival Airbus. The stock had remained a Zacks Rank #1 (Strong Buy) as of Friday's close.
As for American, the Zacks Rank #3 (Hold) stock is trading back near lows not seen since mid-2016. Regarding its extended grounding of the 737 MAX, the company awaits guidance from the Federal Aviation Administration (FAA), Department of Transportation and the National Transportation Safety Board.
Disney to Unveil Streaming This Week?
On Thursday, The Walt Disney Company DIS holds its Investor Day, which this year is expected to reveal the centerpiece to its Direct-to-Consumer strategy: a streaming service called Disney+. Reportedly, the service is expected to cost less than rival Netflix's NFLX monthly fee, with a launch date somewhere in the vicinity of late 2019.
Analysts predict Disney+ will acquire more than 100 million subscribers over the next decade, though near-term the company is expected to take a loss as it removes its Marvel, Star Wars, Pixar and other studio output from Netflix's platform. An estimated $150 million in licensing is estimated to be coming off Disney profits in 2019.
Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report American Airlines Group Inc. (AAL): Free Stock Analysis Report The Walt Disney Company (DIS): Free Stock Analysis Report Netflix, Inc. (NFLX): Free Stock Analysis Report The Boeing Company (BA): Free Stock Analysis Report To read this article on Zacks.com click here. Zacks Investment Research