10 Stocks Nosedive, Defying Broader Optimism

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1. FTAI Aviation Ltd (NASDAQ:FTAI)

FTAI Aviation Ltd (FTAI) was Tuesday’s biggest loser, slashing its share price by 25.44 percent to close at $83.79 apiece following an investigation that revealed the truth about its financials.

Based on an investigation conducted by Bleichmar Fonti & Auld LLP, Muddy Waters claims that FTAI Aviation has been recording one-time engine sales as Maintenance Repair & Overhaul (MRO) revenue in its Aerospace Products segment.

Muddy Waters said that this has enabled the company to present a misleading narrative of growth in its Aerospace Products revenue, which has benefited insider sellers. The research firm estimates that the majority of FTAI Aviation’s adjusted EBITDA in the Aerospace Products segment comes from gains on sales, which are less recurring in nature, and that FTAI Aviation engaged in channel stuffing to inflate its 2023 financial results.

While we acknowledge the potential of FTAI as an investment, our conviction lies in the belief that AI stocks hold greater promise for delivering higher returns and doing so within a shorter timeframe. If you are looking for an AI stock that is more promising than FTAI but that trades at less than 5 times its earnings, check out our report about the cheapest AI stock.

READ NEXT: 20 Best AI Stocks To Buy Now and Complete List of 59 AI Companies Under $2 Billion in Market Cap

Disclosure: None. This article is originally published at Insider Monkey.

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