SOFX ALERT
Private defense companies are here to stay — what does that mean for national security? | Defense News

Private defense companies are here to stay — what does that mean for national security? | Defense News

Share prices of many military and intelligence contractors have risen sharply since the election of Donald Trump as the United States’ president.

Investors are betting that an increase in defense spending will provide a windfall for these firms. For instance, General Dynamics, a large contractor that develops combat vehicles and weapons systems for the U.S. military, saw its stock price jump by more than  30 percent in the months after the election. Likewise, Kratos Defense and Security Services, a smaller firm that builds drones for the U.S. Air Force, saw its shares soar  more than 75 percent between November 2016 and May 2017.

Source: Private defense companies are here to stay — what does that mean for national security? [Commentary]