Why AeroVironment Stock Dived by 10% Today

On a generally good Monday for the stock market, AeroVironment (NASDAQ: AVAV) was a notable exception. The specialized defense company saw its share price sink by almost 10% that day, due to a work stoppage on a very lucrative arrangement between the company and the U.S. government. By contrast, the S&P 500 index, largely free of such burdens, inched 0.1% higher on the day.AeroVironment, which focuses on developing and manufacturing combat drones such as the popular Switchblade, disclosed in a regulatory filing that a protest has been filed with the U.S. government against the Army's current Switchblade contract with the company. As a result of this action, the Army issued a stop work order on the contract. The protest, filed with the federal Government Accountability Office (GAO), is currently being considered by that organization. The company expects the GAO to render a decision on the matter by Dec. 16.Continue readingWeiter zum vollständigen Artikel bei MotleyFool Weiter zum vollständigen Artikel bei MotleyFool