Aerovironment Inc (AVAV)

Shares of AeroVironment Inc. (AVAV) dropped by 10.15% from $141.23 to $126.89 in the trading on Wednesday, December 6, 2023. The reason why AVAX is down today is due to concerns about the company's cash flow, despite the company reporting an impressive earnings beat and raising guidance.

• Free Cash Flow Concerns: Despite the impressive revenue growth and reported profits, it was revealed that AeroVironment generated negative free cash flow of $35.7 million through the end of the fiscal first half, worse than the positive $24.1 million in free cash flow generated in the same period the previous year.
• Investor Skepticism: The negative free cash flow despite strong earnings and revenue growth likely raised concerns among investors, leading to the decline in the stock price.

AVA's stock fell 15.51% because they is not on the list of potential vendors for its Future Tactical Uncrewed Aircraft Systems (FTUAS) program. Investors are disappointed with the outcome, sending shares down.

https://www.fool.com/investing/2023/05/25/why-aerovironment-stock-is-falling-today/