The shares in Boeing dropped in pre-market trading, falling from $214 to $198, according to foreign media reports.
The share price declined by more than 7 per cent ahead of the market opening.
Also Read: Air India plane crashes near Ahmedabad; 110 confirmed dead
It was not immediately clear what caused the crash. Boeing said in a statement it was aware of initial reports and was working to gather more information.
The news comes as the planemaker tries to rebuild trust related to safety in its jets and ramp up production under new Chief Executive Officer Kelly Orthberg.
Boeing's shares were down about 8% at $196.52 in premarket trading.
"It's a knee jerk reaction (to the incident) and there's revised fears of the problems that plagued Boeing aircraft and Boeing itself in recent years," said Chris Beauchamp, analyst at IG Group.
An Air India flight bound for London’s Gatwick Airport crashed minutes after take-off from Ahmedabad on Thursday, killing at least 110 people and injuring several others, officials confirmed.
The Boeing 787-8 Dreamliner, carrying 242 people — including 217 adults and 11 children — lost control shortly after departure at 1:39 pm local time and crashed in a densely populated residential area near the Sardar Vallabhbhai Patel International Airport.
