Kratos Defense & Security <\/strong>(NASDAQ: KTOS)<\/span> stock crashed 9% through 12:25 p.m. ET Wednesday. No one seems to know why this happened…<\/p>\n But I have a theory.<\/p>\n President Trump has been making noises about wanting to annex (purchase, invade) Greenland lately. Greenland belongs to Denmark, a U.S. NATO ally. It’s not happy about this — and neither are the other NATO nations!<\/p>\n As The Wall Street Journal <\/em>reports today, European leaders are mulling how to the Greenland issue. One possible response might be to “accelerate … plans to spend more on defense or shift some military hardware purchases away from the U.S.”<\/p>\n That’s where Kratos enters the chat. Kratos builds military drones — mainly for the U.S. military. Still, as Defense Finance Monitor points out, Kratos “has quietly emerged as a significant player in Europe’s quest for cutting-edge military capabilities.” Kratos’s “stealth drones [and] satellite communication networks … are attracting interest across NATO allies and European defense circles.”<\/p>\n Or at least they were<\/em>.<\/p>\n If Europe turns away from buying weapons systems from the U.S., then that could put the European part of Kratos’s growing revenue stream at risk.<\/p>\n So how big a risk is this for Kratos investors, and does the risk justify today’s sell-off?<\/p>\n That’s the good news, because the answers are “not big” and “probably not.” According to data from S&P Global Market Intelligence, barely 4% of Kratos’s revenues come from arms sales to Europe — versus 83% from North America.<\/p>\n Don’t get me wrong. I still think Kratos stock is overpriced at nearly 1,000 times earnings. But if you thought Kratos stock was worth owning last week, this current spat over Greenland probably shouldn’t change your thinking, or make Kratos stock a sell.<\/p>\n Before you buy stock in Kratos Defense & Security Solutions, consider this:<\/p>\n The Motley Fool Stock Advisor<\/em> analyst team just identified what they believe are the\u00a010 best stocks<\/strong> for investors to buy now\u2026 and Kratos Defense & Security Solutions wasn\u2019t one of them. The 10 stocks that made the cut could produce monster returns in the coming years.<\/p>\n<\/p><\/div>\n Consider when Netflix<\/strong> made this list on December 17, 2004… if you invested $1,000 at the time of our recommendation,\u00a0you\u2019d have $470,587<\/strong>!* Or when Nvidia<\/strong> made this list on April 15, 2005… if you invested $1,000 at the time of our recommendation, you\u2019d have $1,091,605<\/strong>!*<\/p>\n Now, it\u2019s worth noting\u00a0Stock Advisor\u2019s<\/em> total average return is 930% \u2014 a market-crushing outperformance compared to 192% for the S&P 500.\u00a0Don’t miss the latest top 10 list, available with\u00a0Stock Advisor<\/em>, and join an investing community built by individual investors for individual investors.<\/span><\/strong><\/span><\/p>\n See the 10 stocks \u00bb<\/strong><\/p>\n *Stock Advisor returns as of January 21, 2026. <\/em><\/p>\n<\/div>\n<\/div>