Millennials rush to buy Boeing stock despite grounding of 737 Max fleet
- Massive casualties in Ethiopian Airlines crash follows deadly Lion Air crash in Indonesia last October
Millennials are buying the dip in Boeing’s stock, according to data from Robinhood, a free trading app popular among that demographic.
Boeing’s stock fell as much as 14 per cent in the wake of a second crash in five months involving the 737 Max aircraft. One hundred and 57 people in an Ethiopian Airlines flight died soon after take-off from Addis Ababa on Sunday. Last October, 189 people died when a Lion Air jet crashed in Indonesia.
The jet represents the bulk of Boeing’s 5,000-strong aircraft orders.
On Wednesday, US President Donald Trump ordered the grounding of all 737 Max aircraft following the actions of other governments and airlines across the world.
On Thursday, data collected by Markets Insider showed the number of accounts holding Boeing shares jumped by 68 per cent from a week earlier to 29,000.
Millennial traders may be on to something as Boeing shares closed higher on Wednesday – their first gain since the Ethiopian Airlines jet crashed on Sunday.
If history is any indication, Boeing shares should soon resume their upwards trajectory. Back in January 2013, Boeing’s 787 was grounded following several incidents involving battery malfunctions. The plane maker’s stock rallied 20 per cent between the grounding of the 787 and the resumption of flights in April.