Why AeroVironment Stock Is Falling Today

The U.S. Army has narrowed its list of potential vendors for its Future Tactical Uncrewed Aircraft Systems (FTUAS) program, and it appears AeroVironment (NASDAQ: AVAV) didn't make the cut. AeroVironment makes small- to mid-size unmanned aerial vehicles (UAVs) -- or drones -- primarily for military customers, including some that are small enough to be carried into battle on a soldier's back. In February, AeroVironment was selected along with Northrop Grumman, Textron, Griffon Aerospace, and Sierra Nevada to participate in an effort to replace the Textron-made Shadow reconnaissance and targeting drone.