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Expanding NATO – it’s a $quillion bonanza for the U.S. weapons industries!!

Expanded NATO Will Shoot Billions To US Defense Contractors, Forbes,  Jon Markman

Analyzing tech stocks through the prism of cultural change. 23 May 22,   Two more Nordic countries are joining the North Atlantic Treaty Organization. The real winners are American defense companies.

Finland and Sweden officially applied last week to join NATO. If admitted they would join their Nordic neighbors in the alliance, and open up a big new market for American defense contractors.

It would be a big win for Raytheon (RTN), Lockheed Martin LMT +2.1% (LMT) and Northrop Grumman NOC +3% (NOC).

……… Treaty obligations will a mean significant increase in defense spending. Finland has already ordered 64 new F-35 warplanes, the elite joint strike fighter developed by Lockheed Martin, Northrop Grumman and BAE Systems (BAESY). The JSFs cost between $110 million and $135.8 million.

More importantly, aligning with NATO is a commitment to interoperability with the American defense ecosystem. This directly benefits the big U.S. contractors. The market for their goods is expanding and they will face no competition for the foreseeable future.

……… President Biden signed last week a $40 billion Ukrainian war package. The United States is sending existing equipment to the war-torn country. Those systems will later be replenished at an additional cost to U.S. taxpayers……………………….  https://www.forbes.com/sites/jonmarkman/2022/05/23/expanded-nato-will-shoot-billions-to-us-defense-contractors/?sh=14715533189f

May 24, 2022 - Posted by Christina Macpherson | Uncategorized