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Gogo shares plunge amid ViaSat contract win, SEC filing

Shares of Gogo — an inflight broadband firm — shed more than 16 percent Friday after rival company ViaSat won a major contract with American Airlines.

ViaSat announced Friday it had been selected as the inflight Wi-Fi provider for American's new 737 Max fleet. Its shares were up about 4 percent.

"We believe we are now approaching the end of an era where passengers have paid very high prices for very slow connections. Our agreement highlights a significant initial step for American to deliver an onboard Wi-Fi experience every passenger will want to use," ViaSat Chairman and CEO Mark Dankberg said in a statement.

Gogo shares were also under pressure after a Securities and Exchange Commission filing showed the company could lose a large of its American Airlines business.

"While we cannot predict with any certainty when and with respect to which aircraft American will exercise such option, we currently expect that the option will be exercised by American with respect to a significant portion, or potentially all, of such approximately 550 aircraft from time to time over the next several years," the filing said.

Nonetheless, CNBC's Jim Cramer said Friday this is mostly about Netflix.

"Trying to come back from California and watch the Super Bowl, thought that for sure there would be broadband, but it was Gogo's systems, and Google can't accommodate Netflix. Anyway Gogo lost some contracts to ViaSat and a new batch of American Airlnes planes. On ViaSat, … you can get Netflix," he said on "Squawk on the Street." "How can it be that in this day and age that I can't stream [Netflix]?"

Gogo has fallen nearly 48 percent in 2016 and more than 58 percent over the past year.

Disclosure: Cramer's trust did not own American, Netflix, Gogo or ViaSat stock when this story was published.