Drone Stocks Soar After Palantir Partnership and Mysterious Sightings in the Northeast
Drone stocks rallied on Monday as retail interest in the sector picked up, driven by a partnership between Palantir and Red Cat Holdings, as well as mysterious drone sightings in the Northeast. Red Cat shares surged 27% after announcing its collaboration with Palantir to integrate visual navigation software into its drones.
Other drone companies, including Unusual Machines and Kratos Defense, also saw significant gains, with Unusual Machines surging 16% and Kratos Defense adding 5%. Aerovironment gained 8%. The popularity of Red Cat’s ticker symbol, RCAT, on WallStreetBets has surged over 1,625% in the past 24 hours, making it the sixth-most-popular mention on the platform.
The surge in interest comes as sightings of drones have increased in the Northeast, sparking concerns about national security. However, FBI officials have said that most sightings are of manned aircraft being misidentified as drones. Despite this, many on Wall Street view the incoming White House administration as a potential positive for the sector, with Tesla CEO Elon Musk having expressed support for drone technology.
The use of counter-drone technologies by local and state law enforcement is also seen as a potential driver of investment in the sector. Analysts predict that a surge in counter-drone investments by local and state government agencies is likely in the next decade.
Furthermore, the connection to President-elect Donald Trump through his son, Trump Jr.’s, advisory board role at Unusual Machines, is seen as another potential catalyst for the sector. The National Defense Bill recently passed in the House is also drawing interest, with a provision that would ban China-based DJI from selling new drones to the U.S. if it is signed into law.
