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Key Takeaways
- Shares of Boeing surged Friday to lead Dow Jones Industrial Average gainers after President Donald Trump named the plane maker the winner of a contract to build the U.S. Air Force's next-generation fighter jet, the F-47.
- Lockheed Martin shares fell nearly 6% on Friday after losing out to its competitor.
- Financial terms were not disclosed, but The Wall Street Journal reported that "experts say the total research, development and acquisition costs could top $50 billion."
Boeing (BA), which leads Dow Jones Industrial Average gainers on Friday, saw its shares soar after President Donald Trump declared Boeing the winner of a new contract for the Air Force to build their next-generation F-47 Fighter Jet.
Boeing will be awarded the contract for next-generation air dominance platforms by the Air Force, Trump said in a video provided to The Wall Street Journal.
Boeing was awarded the Next Generation Air Dominance Platform by the Air Force. Financial terms were not disclosed, but the Journal reported that "experts say the total research, development and acquisition costs could top $50 billion."
"We recognize the importance of designing, building and delivering a 6th-generation fighter capability for the United States Air Force," Boeing Defense, Space & Security CEO Steve Parker said. "In preparation for this mission, we made the most significant investment in the history of our defense business."
Boing stock recently increased by nearly 4%. Lockheed Martin shares (LMT) fell more than 5% following the loss of its defense contractor to its competitor. Lockheed Martin has supplied the Air Force F-22 Raptor jets and F-35 fighters. Journal reported that F-47s would replace F-22s.
Lockheed’s spokesperson told Investopedia that, “while disappointed with the outcome, we remain confident that we delivered a solution competitive,” “We will wait for further discussions with U.S. Air Force.”
