💎 Fed’s first rate cut since 2020 set to trigger market. Find undervalued gems with Fair ValueSee Undervalued Stocks

Trump asks Boeing for price-quote on new fighter, Lockheed shares sink

Published 12/23/2016, 02:35 PM
Updated 12/23/2016, 02:50 PM
© Reuters.  Tough negotiating by President-elect.
BA
-
LMT
-
TWTR
-

Investing.com -- Shares of Lockheed Martin Corporation (NYSE:LMT) sunk today on news that President-elect Trump is unhappy with the defense contractor's performance, and has asked rival Boeing Company (NYSE:BA) to provide a price quote for a replacement fighter plane.

The F-35 price has doubled, and the number of aircraft delivered to the military has been small, at fewer than 200 fighters, according to defense analysts.

Shares of Lockheed dropped yesterday by 2%, and another 1.17% today during intraday trading.

The price per share is now $249.88, down $2.92.

"Based on the tremendous cost and cost-overruns of the Lockheed-Martin F-35, I have asked Boeing to price-out a comparable F-18 Hornet," said Trump in a posting on the Twitter Inc (NYSE:TWTR) social media site.

President Barack Obama also had issues with the F-35 when he came to office in 2009 and worked with Congress on the issue, apparently to no avail, however, as the problems persist.

President-elect Trump has made a lot of news in the military sphere in recent days, meeting with the leading defense contractors and calling for an arms race -- meaning a move to improve nuclear weapons technologies, not the number of warheads -- while he is on a working Christmas vacation at the Mar-a-Lago resort he owns in Palm Beach, Fla.

Latest comments

Risk Disclosure: Trading in financial instruments and/or cryptocurrencies involves high risks including the risk of losing some, or all, of your investment amount, and may not be suitable for all investors. Prices of cryptocurrencies are extremely volatile and may be affected by external factors such as financial, regulatory or political events. Trading on margin increases the financial risks.
Before deciding to trade in financial instrument or cryptocurrencies you should be fully informed of the risks and costs associated with trading the financial markets, carefully consider your investment objectives, level of experience, and risk appetite, and seek professional advice where needed.
Fusion Media would like to remind you that the data contained in this website is not necessarily real-time nor accurate. The data and prices on the website are not necessarily provided by any market or exchange, but may be provided by market makers, and so prices may not be accurate and may differ from the actual price at any given market, meaning prices are indicative and not appropriate for trading purposes. Fusion Media and any provider of the data contained in this website will not accept liability for any loss or damage as a result of your trading, or your reliance on the information contained within this website.
It is prohibited to use, store, reproduce, display, modify, transmit or distribute the data contained in this website without the explicit prior written permission of Fusion Media and/or the data provider. All intellectual property rights are reserved by the providers and/or the exchange providing the data contained in this website.
Fusion Media may be compensated by the advertisers that appear on the website, based on your interaction with the advertisements or advertisers.
© 2007-2024 - Fusion Media Limited. All Rights Reserved.