United States Government Cut the Defense Budget Of Boeing Company.

Boeing has been a very successful company, especially in fiscal year 2012 the company outperformed but later on in fiscal year 2013 its performance was not that good compared to year 2012. As the US government has cut their defense budget, it has put a huge impact on Boeing’s performance. The majority of its revenues were generated from the defense business segment of the company. The investors currently think that the commercial business segment of the company will not be able to perform up to the mark compared to its defense business segment. The investors worry more about the quick growth of the company while considering the commercial business segment of Boeing, it will grow but in a slow pace. This makes the investors confused either to stay with the company or sell shares. BA Stock Price has been affected considering the current situation. On the other hand, in order to make the BA Stock Price sustain in the market, Boeing is going to lay off 600 employees in order to reduce operating expense of the company and come up with better earnings.

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