Why Ammo Is Soaring 15% This Week
Shares of Ammo (NASDAQ: POWW) are up 15.1% compared to where they closed last Friday, according to data provided by S&P Global Market Intelligence. While there was no company specific news that would account for the big jump in price, The New York Times this week reported the Pentagon is planning to boost its production of artillery ammunition by 500% over the next two years to replenish depleted U.S. stockpiles.
Because the U.S. is heavily supporting Ukraine in its defense against Russia, it has shipped large quantities of materiel to the war-torn country that have drawn down domestic reserves to dangerously low levels.
Ammo is a munitions supplier to the U.S. military and though the Times report primarily discussed artillery shells, it did note the Pentagon has shipped more than 100 million rounds of small arms ammunition to Ukraine since the war broke out.
Source Fool.com
