War Is Big Business - Defense Stocks Soar As U.S. Strikes Syria
When they say that ‘going on a war’ simply translates to ‘business as usual,’ it seems there’s a grain of truth in it. Here’s one proof: defense stocks soar as U.S. strikes Syria.
Dec 28, 202390 Shares8203 Views
The newsthat defense stocks soar as U.S. strikes Syriaconfirms the assumption that wars mean business.
The Tomahawk missiles fired by the U.S. Navy against a Syrian air base rang up at approximately $1.4 million per missile - and the markets responded by rewarding their manufacturer’s stock.
Shares of Raytheon, which makes Tomahawk missiles, gained 3.54 points, a roughly 2.3 percent increase, in pre-market trading following Thursday night’s strike, Business Insider reported.
While a 2.3 percent change seems modest, consider how it impacts Raytheon’s total market value.
Sputnik calculates that based on Raytheon’s Thursday closing price of $150.75, the company’s market value was $44.1 billion. When the markets opened on Friday morning, Raytheon’s value had shot up to $45.4 billion.
Thus, President Donald Trump’s strike caused the missile maker to gain $1.4 billion in value overnight.
Dollar Explosion
On Thursday night, the USS Ross and USS Porter fired not one, not two, but 59 missiles at the Syrian Army’s Shayrat Airbase.
According to U.S. Navy spokesman Rob Koon, each missile costs $1.41 million.
Sputnik estimates, then, that Thursday’s strike cost the Navy roughly $83 million on the missiles alone.
Alleged Chemical Attack
Washington believes the airfield played an important role in Assad’s alleged chemical attack in Idlib earlier this week.
In midday trading, Raytheon’s stock cooled off but was still a net gainer since before the attack.
Boeing, meanwhile, saw its stock jump almost 1 percent. Boeing builds everything from missile guidance systems to F/A-18 Super Hornets.
When defense stocks soar as U.S. strikes Syria, can we expect more missile attacks?
The Tomahawk missiles fired by the U.S. Navy against a Syrian air base rang up at approximately $1.4 million per missile - and the markets responded by rewarding their manufacturer’s stock.
Shares of Raytheon, which makes Tomahawk missiles, gained 3.54 points, a roughly 2.3 percent increase, in pre-market trading following Thursday night’s strike, Business Insider reported.
While a 2.3 percent change seems modest, consider how it impacts Raytheon’s total market value.
Sputnik calculates that based on Raytheon’s Thursday closing price of $150.75, the company’s market value was $44.1 billion. When the markets opened on Friday morning, Raytheon’s value had shot up to $45.4 billion.
Thus, President Donald Trump’s strike caused the missile maker to gain $1.4 billion in value overnight.
Dollar Explosion
On Thursday night, the USS Ross and USS Porter fired not one, not two, but 59 missiles at the Syrian Army’s Shayrat Airbase.
According to U.S. Navy spokesman Rob Koon, each missile costs $1.41 million.
Sputnik estimates, then, that Thursday’s strike cost the Navy roughly $83 million on the missiles alone.
Alleged Chemical Attack
Washington believes the airfield played an important role in Assad’s alleged chemical attack in Idlib earlier this week.
In midday trading, Raytheon’s stock cooled off but was still a net gainer since before the attack.
Boeing, meanwhile, saw its stock jump almost 1 percent. Boeing builds everything from missile guidance systems to F/A-18 Super Hornets.
When defense stocks soar as U.S. strikes Syria, can we expect more missile attacks?
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