The US military’s aerial refueling tanker contract is up for bid. The deal is worth $40 billion and involves building 179 planes. Boeing (NYSE: BA) and its investors are counting on the deal. But, EADS, parent of Airbus, and Northrop Grumman (NYSE: NOC) have teamed up to try to get the business.
According to the AP, with more tankers to be replaced in the next several years "s much as $100 billion over the next 30 years is at stake, says Loren Thompson, a defense industry analyst with Lexington Institute, a policy think tank."
If Boeing does not win the contract, its shareholders face a potential big drop in company’s shares. Boeing’s stock have already fallen from a 52-week high of $107.83 to $83.04. Much of the drop is due to delays in the launch of the company’s new 787.
Another piece of bad news and the shares could end up back below $75, near their 52-week low.
Douglas A. McIntyre
It’s Your Money, Your Future—Own It (sponsor)
Retirement can be daunting, but it doesn’t need to be.
Imagine having an expert in your corner to help you with your financial goals. Someone to help you determine if you’re ahead, behind, or right on track. With SmartAsset, that’s not just a dream—it’s reality. This free tool connects you with pre-screened financial advisors who work in your best interests. It’s quick, it’s easy, so take the leap today and start planning smarter!
Don’t waste another minute; get started right here and help your retirement dreams become a retirement reality.
Thank you for reading! Have some feedback for us?
Contact the 24/7 Wall St. editorial team.
Latest from 24/7
Our expert who first called NVIDIA in 2009 is predicting 2025 will see a historic AI breakthrough.
You can follow him investing $500,000 of his own money on our top AI stocks for free.