Why FTAI Aviation Ltd. (FTAI) Crashed Last Week

We recently compiled a list of the These 10 Firms Were Last Week’s Worst Performers. In this article, we are going to take a look at where FTAI Aviation Ltd. (NASDAQ:FTAI) stands against the other stocks.

Wall Street’s main indices finished firmer on Friday, with all main indices settling in the green territory ahead of President-elect Donald Trump’s return to the White House.

Week-on-week, the Dow eked out a 3.81-percent gain, the S&P rallied 3.79 percent, while the Nasdaq increased by 3.84 percent.

Ten companies from diverse sectors, however, ended Friday weaker, posting notable declines versus the week prior. In this article, let’s look at which firms suffered a bloodbath and the reasons that dragged their performance.

For this week’s list, we only focused on companies with a market capitalization of at least $2 billion and a minimum trading volume of $5 million.

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) plunged by 35.4 percent week-on-week to close at $112.38 on Friday versus the $174.02 booked a week prior as investor sentiment was weighed down by news that it was being investigated for allegedly manipulating its financials.

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, several shareholder law firms initiated their own investigations into FTAI Aviation’s (NASDAQ:FTAI) financial reporting practices.

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 1st on our list of last week’s worst performers. 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.

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