A number of stocks fell in the afternoon session after markets faded the Nvidia rally in the morning session, as investors remained uncertain about future rate cuts.
Shares of aerospace and defense company Redwire (NYSE:RDW)
jumped 2% in the afternoon session after the company announced it was awarded a $44 million contract from the Defense Advanced Research Projects Agency (DARPA). The phase 2 contract provided funding to advance DARPA's Otter Very Low Earth Orbit (VLEO) mission. The funds were allocated to complete the manufacturing and delivery of what was described as the world's first "air-breathing" spacecraft. Redwire utilized its SabreSat platform for the project, which aimed to advance next-generation orbital capabilities. The contract award highlighted the company's role in developing innovative space and defense technology solutions.
As part of the contract, Redwire will use the funding to complete the manufacturing of the spacecraft and deliver it to DARPA for the agency’s Otter Very Low Earth Orbit mission.
A number of stocks fell in the morning session after concerns regarding lofty artificial intelligence valuations triggered a pullback in the technology sector.
A number of stocks fell in the afternoon session after the broader U.S. stock market declined amid investor caution and a pullback in technology stocks.
Investors looking for hidden gems should keep an eye on small-cap stocks because they’re frequently overlooked by Wall Street.
Many opportunities exist in this part of the market, but it is also a high-risk, high-reward environment due to the lack of reliable analyst price targets.
Redwire’s third quarter results were marked by rapid year-on-year growth, yet the market responded negatively as the company’s revenue fell meaningfully short of Wall Street’s expectations. Management attributed the shortfall primarily to delays in U.S. government contract awards, particularly affecting critical defense and reconnaissance programs. CEO Peter Cannito described the impact as "a temporary near-term timing issue," citing strong customer demand but slower-than-expected contracting activity due to the ongoing government shutdown. The company also pointed to its acquisition of Edge Autonomy as a key contributor to revenue growth and operational transformation during the quarter.
The Russell 2000 (^RUT) is home to many small-cap stocks, offering investors the chance to uncover hidden gems before the broader market catches on.
However, these companies often come with higher volatility and risk, as their smaller size makes them more vulnerable to economic downturns.
Aerospace and defense company Redwire (NYSE:RDW) missed Wall Street’s revenue expectations in Q3 CY2025, but sales rose 50.7% year on year to $103.4 million. The company’s full-year revenue guidance of $330 million at the midpoint came in 21.9% below analysts’ estimates. Its GAAP loss of $0.29 per share was 93.3% below analysts’ consensus estimates.
Shares of aerospace and defense company Redwire (NYSE:RDW)
fell 18.4% in the morning session after the company reported third-quarter financial results that missed analyst estimates and lowered its full-year revenue forecast.
After a brief and cautious rebound on Wednesday, risk-off sentiment returned sharply on Thursday, with AI-linked stocks leading a broad selloff across Wall Street and renewed pressure hitting crypto markets.
Aerospace and defense company Redwire (NYSE:RDW) missed Wall Street’s revenue expectations in Q3 CY2025, but sales rose 50.7% year on year to $103.4 million. The company’s full-year revenue guidance of $330 million at the midpoint came in 21.9% below analysts’ estimates. Its GAAP loss of $0.29 per share was 93.3% below analysts’ consensus estimates.
Stocks under $10 pique our interest because they have room to grow (as well as the most affordable option contract premiums).
That doesn’t mean they’re bargains though, and we urge investors to be careful as many have risky business models.
A number of stocks fell in the morning session after markets became increasingly wary of high valuations following a significant AI-driven rally. The tech-heavy Nasdaq fell approximately 1.4% as a wave of caution swept through the market. A key example of this trend is Palantir Technologies, which saw its shares drop around 7% despite reporting record quarterly results that surpassed analyst estimates and raising its full-year revenue outlook. This seemingly contradictory movement highlighted a broader sentiment shift. Investors appeared to be engaging in profit-taking, concerned that the recent surge in AI-related stocks had led to stretched valuations. This broader market caution affected high-growth technology companies that had previously surged on AI optimism but faced increased scrutiny, signaling a potential cooling-off period for the sector.
Adding serious weight to this caution, leadership at both Goldman Sachs and Morgan Stanley highlighted the possibility of a correction in the equity markets over the next couple of years.
Despite the euphoria driven by AI optimism and the promise of future rate cuts, these banks viewed this cooling-off period not as a disaster, but as a necessary and healthy feature of a long-term bull market.
Wall Street is overwhelmingly bullish on the stocks in this article, with price targets suggesting significant upside potential.
However, it’s worth remembering that analysts rarely issue sell ratings, partly because their firms often seek other business from the same companies they cover.
While some companies burn cash to fuel expansion, others struggle to turn spending into sustainable growth.
A high cash burn rate without a strong balance sheet can leave investors exposed to significant downside.
