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Kevin O’Leary just issued a dire warning about Boeing — says he doesn't own the stock because 'every 9 months we get another event like this.' Why he feels 'very sorry' for leadership

Jing Pan
·3-min read

Boeing's (BA) stock has faced significant pressure following a recent incident with the company's 737 MAX 9 jet, as highlighted by Shark Tank star Kevin O’Leary.

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“I was a shareholder of Boeing for years and it was one of the best performing stocks in my portfolio until these issues around execution started,” he said in a recent interview with FOX Business. “It's been brutal. Every nine months we get another event like this.”

What happened to Alaska Airlines Boeing 737 Max 9

On Jan. 5, an Alaska Airlines Boeing 737 Max 9 experienced a mid-flight emergency when a cabin exit door plug blew out, creating a hole in the fuselage. The incident occurred shortly after takeoff from Oregon, at approximately 16,000 feet, leading to cabin depressurization. The flight, bound for Ontario, California, made an emergency landing in Portland without any fatalities or serious injuries, although some minor injuries were reported.

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Following this incident, the FAA grounded 171 Boeing 737 Max 9 planes and launched an investigation into Boeing's manufacturing processes. This event marks the first significant in-flight safety issue for Boeing since the two fatal 737 Max crashes in 2018 and 2019.

As a former investor of the company, O’Leary expressed his frustration over the incident, “At some point, you have to look at the management and say, wait a second, why does this keep happening? Why is the entire fleet grounded yet again?”

Read more: Millions of Americans are in massive debt in the face of rising rates. Here's how to take a break from debt this month

A ‘very complicated’ issue

O’Leary emphasized the complexity of the problem and indicated that Boeing’s management team will be under mounting pressure.

“This is a very complicated engineering and supply chain issue in building these remarkable aircraft, which by the way, the safety factor is still the safest way to travel,” he said, adding that he feels “very sorry” for the company’s executive team.

Since Jan. 5, Boeing’s share price has dropped by nearly 10%.

O’Leary, who is no longer a shareholder, shared his view on the stock: “I don't own the stock anymore because I know in the next nine months, we'll get another event like this, and unfortunately, it really hurts the stock price and it slows down the advancement.”

On Jan. 6, Boeing released a statement acknowledging the seriousness of the situation and supporting the FAA’s decision.

“We agree with and fully support the FAA's decision to require immediate inspections of 737-9 airplanes with the same configuration as the affected airplane. In addition, a Boeing technical team is supporting the NTSB's investigation into the Jan. 5 accident. We will remain in close contact with our regulator and customers,” the airplane manufacturer said.

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This article provides information only and should not be construed as advice. It is provided without warranty of any kind.