What Happened?
Shares of aerospace and defense company Boeing (NYSE: BA) jumped 5.7% in the afternoon session after the company announced that it secured the contract to produce the next generation of fighter jets for the U.S. military, successfully outbidding competitor Lockheed Martin. The contract, known as Next Generation Air Dominance, or NGAD, is supposed to help build jets (F-47) that will accompany a future fleet of drone aircraft to protect the US against its adversaries. According to the press release, the contract is worth an estimated $20 billion.
After the initial pop the shares cooled down to $180.22, up 4.3% from previous close.
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What The Market Is Telling Us
Boeing’s shares are not very volatile and have only had 5 moves greater than 5% over the last year. In that context, today’s move indicates the market considers this news meaningful, although it might not be something that would fundamentally change its perception of the business.
The previous big move we wrote about was 2 days ago when the stock gained 7% on the news that CFO Brian West provided constructive updates about the company's financial position at an investor conference. He added that the business was "broadly tracking to expectations" with the March 2025 delivery of 787 jets similar to the previous month. These updates suggested that the company's operations may be stabilizing.
Boeing is up 4.9% since the beginning of the year, and at $180.22 per share, it is trading close to its 52-week high of $192.99 from March 2024. Investors who bought $1,000 worth of Boeing’s shares 5 years ago would now be looking at an investment worth $1,706.
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