Lockheed Martin stock nosedives wiping out $30 billion in 60 days

Core Viewpoint - Lockheed Martin has experienced a significant decline in market capitalization, dropping 21.56% from its all-time high, raising concerns among investors about future performance [1][4]. Group 1: Market Performance - Lockheed Martin's stock reached an all-time high of $614.61 on October 20, 2024, but has since fallen to $482.06, resulting in a $30 billion decrease in market capitalization, from $145.83 billion to $114.47 billion [1][4]. - Despite the recent downturn, Lockheed Martin's stock is still up 5.88% year-to-date [4]. Group 2: Factors Influencing Stock Decline - Profit-taking at the all-time high is a primary factor contributing to the stock's decline [4]. - The re-election of Donald Trump has negatively impacted Lockheed Martin, particularly due to the influence of Elon Musk, who has criticized traditional manned aircraft and suggested the potential obsolescence of Lockheed's business model [4]. - The Q3 2024 earnings report showed a beat in earnings per share but revenues fell short of expectations, leading to a consistent downward trend in stock price [4]. Group 3: Potential for Recovery - The current market fear surrounding Lockheed Martin may be exaggerated, as the company plays a crucial role in national defense and military technology [6]. - Lockheed Martin has numerous multi-year contracts that support the operational readiness and modernization of U.S. and allied military forces [7]. - The Department of Government Efficiency (DOGE), led by Musk, is an advisory body without the power to enforce changes, suggesting that the impact on Lockheed Martin may be limited [7].