Lockheed Martin (LMT) Stock: Trump’s Social Media Posts Send Investors on Wild Roller Coaster Ride

Trump tweets—Lockheed stock tumbles. Trump praises—Lockheed stock soars. Welcome to the new fundamentals.

Market Volatility on Demand

Forget earnings reports, defense contracts, or geopolitical analysis. The single biggest driver for one of America's largest defense contractors has become a former president's social media feed. A single post can wipe billions from the company's valuation in minutes, only for a follow-up to send it rocketing back. Analysts are left scrambling, algorithms are overridden, and the old rules of valuation are tossed out the window.

The Algorithm vs. The Man

Trading bots programmed on decades of market data are being blindsided by 280-character pronouncements. It's a stark reminder that in today's market, sentiment—especially politically-charged, headline-grabbing sentiment—can trump traditional metrics. The connection between a commander-in-chief's favor and a defense giant's bottom line has never been more direct, or more volatile.

Investing in the Age of Amplification

This isn't just about Lockheed. It's a case study in modern market mechanics, where perception is engineered in real-time and disseminated at the speed of a 'post' button. Long-term holders are now day traders by circumstance, forced to monitor a digital pulpit alongside P/E ratios. It turns the concept of 'due diligence' into a frantic refresh of a social media timeline.

So next time you check a stock price, ask yourself: are you analyzing a company, or are you just betting on a billionaire's next mood swing? Sometimes, the most sophisticated investment strategy is just a really fast Twitter finger.

TLDR

• Trump initially proposed canceling dividends and stock buybacks for defense contractors, causing Lockheed Martin stock to drop nearly 5% on Wednesday
• The President criticized defense companies for prioritizing shareholder returns over equipment production and facility investment
• Defense stocks plummeted during regular trading hours after Trump’s social media posts on Truth Social
• Trump later announced plans for a $1.5 trillion defense budget for 2027, up from the previously discussed $1 trillion
• After-hours trading saw Lockheed Martin stock surge 7% following the higher budget announcement, reversing the day’s losses

Lockheed Martin found itself on a wild ride Wednesday as conflicting messages from President TRUMP sent the stock through dramatic swings.

You can’t make this up:

Lockheed Martin stock, $LMT, just fell -7% after President Trump banned stock buybacks and dividends on US Defense companies “until problems are rectified.”

2 hours later, President Trump said the US Military budget should be raised to $1.5 trillion and… pic.twitter.com/3e0CRkyg5U

— The Kobeissi Letter (@KobeissiLetter) January 7, 2026

The defense contractor’s shares fell almost 5% during regular trading. The drop came after Trump posted on Truth Social criticizing defense companies for their dividend and buyback programs.

Trump wrote that military equipment “is not being made fast enough.” He called for companies to use money spent on dividends, stock buybacks, and executive compensation to build products instead.

The President claimed defense contractors devote “massive” amounts of capital to these shareholder-friendly programs. He declared the practice “will no longer be allowed or tolerated.”

Lockheed Martin wasn’t alone in the selloff. Other defense stocks including Northrop Grumman, General Dynamics, RTX Corporation, and Huntington Ingalls all dropped during the session.

Lockheed Martin Corporation, LMT

The sector-wide rout reflected investor concern about potential restrictions on how defense companies manage their capital. Trump suggested these firms should reinvest profits rather than borrowing from financial institutions or receiving government money.

Budget Announcement Reverses Losses

The story took a sharp turn during after-hours trading. Trump posted new messages proposing a $1.5 trillion defense budget for 2027.

This figure represents a major increase from the previously discussed $1 trillion budget. The announcement triggered a quick reversal in defense stock prices.

Lockheed Martin jumped 7% in after-hours trading. Northrop Grumman gained 4%, while General Dynamics climbed 4.6%.

RTX Corporation added 2% and Huntington Ingalls increased 2%. The rally erased most of the day’s losses for these companies.

Trump stated the higher budget WOULD allow the country to build a “Dream Military” and remain “safe and secure.” He suggested tariff revenue would help fund the increased spending while also reducing debt.

Questions About Implementation

Trump doesn’t have unilateral power to ban dividends or stock buybacks. Such measures would likely face resistance from company executives, shareholders, and politicians on both sides of the aisle.

The dramatic back-and-forth in stock prices shows how sensitive the defense sector is to policy statements from the incoming administration. Investors struggled to interpret the mixed messages from Trump’s social media posts.

Lockheed Martin closed regular trading at $496.87. The stock trades with a market cap of $115 billion and a dividend yield of 2.69%.

The company’s trading volume hit 4.5 million shares on Wednesday, well above its average daily volume of 1.4 million shares.