Government contractor Booz Allen Hamilton's (BAH) - Get Booz Allen Hamilton Holding Corporation Class A Report stock nosedived over 18% on heavy volume trading in the early afternoon today after the company announced late Thursday that it faces a federal civil and criminal investigation regarding its finances, CNBC reported.
The management, consulting and technology company derives 97% of its income from government clients including the Pentagon and the IRS. This probe will investigate, "cost accounting and indirect cost charging practices with the U.S. government."
Booz Allen has come under fire before for intelligence agency security lapses, most notably related to their hiring of Edward Snowden and his subsequent leak of NSA documents in 2013.
Per government regulation, the Pentagon is permitted to withhold payments to a contractor if that company is found to have financial irregularities.
What's Hot on TheStreet
Snap is bleeding value: Snap Inc. (SNAP) - Get Snap, Inc. Class A Report fell nearly 5% by the close of trading on Wall Street Thursday, but never dipped below the $17 price that shares were sold at on March 2, when the company debuted on the Nasdaq with a $3.4 billion IPO. By the end of that first trading day, with shares rising more than 44%, Snap was valued at just under $33 billion.
Since then it has been all downhill for Snap, TheStreet's Martin Baccardaxreports.
Investors have questioned the relevance of the company's Snapchat app in a market dominated by messaging services such as Facebook's (FB) - Get Meta Platforms Inc. Class A Report WhatsApp and the business-focused Slack Technologies. Wall Street has also raised questions about its ability to monetize the billions of messages it handles each day.
The stock is now 41% south of the all-time high reached on March 3. Snap's market cap has shrunk about $13 billion.
General Electric remains hot on everyone's minds: Change is in the air within the executive ranks at industrial giant General Electric (GE) - Get General Electric Company Report , which of course could mean deep cost cuts to jump-start a stalled stock price.
"The change is welcome," TheStreet's founder Jim Cramer said during an exclusive conference call with members of his Action Alerts PLUS club for investors about long-time CEO Jeff Immelt handing off the baton to John Flannery. "Flannery will make the tough cuts that Immelt seemed incapable of making. We're looking for $2 billion in savings."
Alibaba wants to dominate:TheStreet's Natalie Walters is live with the second part of her exclusive interview with Alibaba's (BABA) - Get Alibaba Group Holding Ltd. Report vice chairman Joe Tsai. Alibaba executive chairman Jack Ma recently made the bold prediction that the Chinese e-commerce giant would hit $1 trillion in gross merchandise value (GMV) by the 2020 fiscal year, and eventually serve two billion customers by 2036. Although Alibaba currently dominates the enormous Chinese market, achieving such lofty goals obviously would require a significant global expansion.
TheStreet takes you through Alibaba's big plans.
Worried about how to pay for your golden years? Ken Fisher, founder of Fisher Investments, and TheStreet's Jim Cramer will tell you what you need to know in a June 21 webinar on the market trends that are shaping retirement planning today.Register herefor the event, which starts at 11 a.m. ET.