Kratos Defense Stock Drops Amidst EU-NATO Tensions

Kratos Defense & Security Solutions stock dropped 9% on Wednesday due to investors' concerns about EU action in response to President Trump's Greenland threats. Kratos builds military drones and satellite communication networks, which attract interest from NATO allies and European defense circles. However, only 4% of Kratos' revenues come from European arms sales, making the risk manageable. The stock is still overpriced at nearly 1,000 times earnings, but the current spat shouldn't change investors' thinking.