Lockheed Martin (LMT) shares plunged 5.25% in intraday trading following news that its competitor Boeing has been awarded a lucrative next-generation fighter jet contract by the Trump administration. This significant contract, estimated to be worth billions of dollars, represents a major setback for Lockheed Martin in the highly competitive defense industry.

The decision, announced during the trading session, caught many investors off guard. Earlier in the day, both Lockheed Martin and Boeing had seen their stocks rise in anticipation of the Pentagon's decision, with Lockheed Martin up 2.6% and Boeing up 1.4%. However, the tables turned dramatically once the contract winner was revealed.

This development is likely to have far-reaching implications for Lockheed Martin's future revenue projections and market position in the defense sector. The loss of such a significant contract to Boeing may force Lockheed Martin to reassess its strategies and potentially seek new opportunities to maintain its competitive edge in the aerospace and defense market.