Here's Why CAE Stock Tumbled in March
Shares in airplane simulator and training company CAE (TSX: CAE) fell a whopping 50.5% in March, according to data provided by S&P Global Market Intelligence. It's hard to think of a set of circumstances more likely to hit the company's potential than the coronavirus pandemic, and unfortunately the company's stock price is taking a battering as investors rush to price in its diminishing long-term earnings prospects.
In a nutshell, CAE is a play on the need to train pilots for long-term growth in commercial aviation. The COVID-19 pandemic is calling into question the previous assumptions about its long-term prospects.
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Source Fool.com
