FTAI Aviation Ltd. (NASDAQ:FTAI) suffered a significant decline of 35.4 percent week-on-week, closing at $112.38 on Friday. The drop is attributed to an investigation by Muddy Waters Research, which alleged that the company manipulates its financials. According to the report, FTAI exaggerates its aftermarket aerospace business, misleads investors by presenting whole engine sales as individual module sales, and inflates Aerospace Products’ EBITDA margins through over-depreciation in the leasing segment.
The investigation led several shareholder law firms to initiate their own investigations into FTAI Aviation’s financial reporting practices. The company ranks 1st on our list of last week’s worst performers.
As an airline services provider, FTAI is engaged in aftermarket power and maintenance for commercial jet engines. However, with AI stocks offering greater promise for delivering higher returns within a shorter timeframe, investors may consider alternative options.
For context, the Dow, S&P, and Nasdaq indices finished firmer on Friday, with gains of 3.81 percent, 3.79 percent, and 3.84 percent respectively. The company’s market capitalization is over $2 billion, and its trading volume exceeds $5 million.
Source: https://finance.yahoo.com/news/why-ftai-aviation-ltd-ftai-062550399.html