Why Did FTAI Aviation (FTAI) Go Down on Friday?

We recently published a list of These 10 Firms Took A Hit on Friday. In this article, we are going to take a look at where FTAI Aviation Ltd. (NASDAQ:FTAI) stands against other firms that took a hit on Friday.

Wall Street’s main indices all finished in the green territory on Friday, as investors repositioned their portfolios ahead of president-elect Donald Trump’s return to office.

The Dow jumped by 0.78 percent, while the S&P surged by 1 percent. Meanwhile, Nasdaq soared 1.51 percent.

However, ten companies under mixed sectors bucked an overall positive market sentiment as multiple negative factors put pressure on investor sentiment. In this article, let’s look at the reasons that dragged their shares performance.

To come up with the top 10 losers, we considered only the stocks with at least $2 billion in market capitalization and $5 million in daily trading volume.

A team of airline employees surrounded by flight deck controls, with a variety of aircraft outside.

FTAI Aviation Ltd. (NASDAQ:FTAI)

FTAI Aviation Ltd. (NASDAQ:FTAI) fell by 6.35 percent on Friday to end at $112.38 apiece as news that it was being investigated for allegedly manipulating its financials dragged investor sentiment.

The investigation stemmed from a report by Muddy Waters Research, alleging that FTAI materially manipulates its financials by exaggerating the size of its aftermarket aerospace business, misleading investors by presenting whole engine sales as individual module sales, inflating Aerospace Products’ EBITDA margins by means of over-depreciation in the leasing segment, and engaging in channel stuffing.

Following the report, shareholder law firm Hagens Berman initiated an investigation into FTAI Aviation’s (NASDAQ:FTAI) financial reporting practices.

“We are investigating whether FTAI has misled investors about its reported revenue growth,” said Reed Kathrein, the Hagens Berman partner leading the investigation.

FTAI Aviation Ltd. (NASDAQ:FTAI) is a company engaged in aftermarket power and maintenance for the most widely used commercial jet engines.

Overall, FTAI ranks 5th on our list of firms that took a hit on Friday. 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 time frame. If you are looking for an AI stock that is as promising as 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.