Heard on the Street: Military stocks are doing poorly amid new competition from outside the industry and changes in spending and procurement
Investors have lost something of their awe for the U.S. military industrial complex.
In an era when the Pentagon is prioritizing new technologies and opening its doors to Silicon Valley firms, legacy contractors can look a bit stuffy—even if they keep getting tons of cash.—which is $25 billion more than requested by President Biden and will allow procurement plus research and development spending to grow 6% over last year’s budget. This cements the Trump administration’s mammoth increase in military expenditures.
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