Boeing Shares Recover as NASA Backs Starliner Program
The Boeing Company shares rose Tuesday after NASA committed $359 million to the Starliner program, offsetting a certification delay for the 737 MAX 10.
Shares of The Boeing Company rose between 2% and 2.8% on Tuesday, recovering from a nearly 7% drop on Monday. The initial decline followed reports of a software glitch on 737 MAX airliners that could interrupt automated navigation guidance during go-around maneuvers. In response, the Federal Aviation Administration postponed certification of the 737 MAX 10, a glitch Boeing management expects to patch by early 2028.
Market recovery was driven by significant support from NASA and financial analysts. NASA Administrator Jared Isaacman announced the return of the Starliner spacecraft to flight, with the agency committing $359 million in funding. This strategic lifeline includes potential uncrewed flights in 2027 and crewed missions in 2028, positioning Starliner as the preferred method for transporting astronauts to the International Space Station over SpaceX's Falcon 9 and Crew Dragon.
UBS further bolstered sentiment by reiterating a buy rating on the stock, describing the recent selloff as overdone. While Boeing reported $1.185 billion in operating cash flow for the first half of 2026, investors remain concerned about near-term cash flow risks and the high cost of inventory.
