The defense and aerospace industry is thriving as the war continues. Boeing (BA) and AeroVironment (AVAV) are the exceptions.
On Monday, AVAV stock lost 9.68% after the U.S. Government Accountability Office (“GAO”) disputed its contract with the U.S. Army. In the protest, the GAO questioned the decision to grant AeroVironment an indefinite-delivery. The contract has a ceiling value of $990 million for the Switchblade systems.
In the biotech sector, BioMarin Pharmaceutical (BMRN) lost 17.71% to close below $70. Ascendis Pharma (ASND) posted positive data for its achondroplasia candidate. This might challenge BioMarin’s Voxzogo. The difference between the two drugs is very minor. The market is potentially over-reacting to the data reading.
In the tech sector, Qorvo (QRVO) dropped by 6.68%. A negative article questioning Apple’s (AAPL) iPhone sales hurt the stock. Broadcom (AVGO) and Cirrus Logic (CRUS) also fell yesterday.
Last week, Arm Holdings (ARM) rallied to $150 after analysts like Morgan Stanley and Raymond James issued bullish ratings. Those opinion pieces proved short-lived. ARM stock closed at $138.40, down by 6.09%.
ARM stock valuations are at risky levels. Its chips are already widely used in phones and computers. Still, its chips in AI PCs could compete against AMD and Intel (INTC).
