Shares of AeroVironment, a drone maker, took a tumble after announcing plans to offer stock and notes to repay debt, despite a recent surge and acquisition. Is this just a glitch, or something more?
Shares of AeroVironment, a drone maker, took a tumble after announcing plans to offer stock and notes to repay debt, despite a recent surge and acquisition. Is this just a glitch, or something more?

Hit Me Baby One More Time...With Dilution?

Okay so like I heard AeroVironment's shares did a little...*oops!*...they fell 11%. Apparently they're offering $750 million in common stock and $600 million in convertible notes. It's all to pay off debt. You know adulting is hard even for drone companies. I can relate honey! Sometimes you just gotta *work work* to pay those bills! They say they'll use the extra cash to like make more drones. More drones means more fun right?

Stronger Than Yesterday...Or Just Yesterday's News?

But here's the thing that's got me saying 'Gimme More!' Their stock was totally soaring up 85% this year! It's like 'Wow that's hot!' And get this Jim Cramer – Mr. Mad Money himself – called them the 'next Palantir of hardware.' That's a big deal right? It's like being called the next Princess of Pop only for you know drones and stuff. But then...BAM! The stock took a tumble. Talk about a rollercoaster!

Crazy...In Love With Acquisitions?

And let's not forget that they *slaved* to snag Blue Halo for $4.1 billion! That's a lot of zeroes! I wonder if they had to do a little *slave 4 u* to get the money? Blue Halo does space related defense tech. So like AeroVironment is going to space now? That's so futuristic! Maybe they'll send a drone to Mars. I'd love to see that!

Toxic...Or Just a Short Squeeze?

Apparently there was also some stuff about a 'short squeeze'. Sounds kinda painful right? It's like when you wear those super tight jeans and you can't breathe! Basically some people bet the stock would go down but it went up and they had to buy shares to avoid losing money. I think that is 'Lucky' isn't it? 'Cause it just boosted the stock price even more...for a bit.

Oops!...Executive Orders?

Oh and President Trump signed something to like make more drones in the US. I guess that's good for business. It's all getting so serious. I am scared. Remember when my cats destroyed my house? That was way easier than this. But who knows maybe this is just another plot twist in the Britney Spears movie that is my life! Gotta stay positive!

Not a Girl Not Yet a Woman...But Definitely a Drone Investor?

So yeah AeroVironment's stock is a little...*complicated*. But hey life's complicated right? I'm no financial guru but it sounds like they're just trying to grow and make cool stuff. Maybe I should invest. Imagine owning a piece of the drone pie! I could call it 'Drone y Drone y'. Ok I'll see myself out now!


Comments

  • No comments yet. Become a member to post your comments.