Drones could be another hot topic in 2025
Quantum computing and electric air taxi stocks are stealing the tech sector's spotlight as 2024 comes to a close. Drones could be another hot topic in 2025, so now is a great time to check in with three notable names in that space: Red Cat Holdings Inc (NASDAQ:RCAT), Kratos Defense & Security Solutions Inc (NASDAQ:KTOS), and AeroVironment, Inc. (NASDAQ:AVAV).
RCAT is down 12.6% at $9.14 at last glance, after the company announced larger-than-expected losses for the fiscal second quarter. Prior to today's bear gap, shares had been in rally mode thanks to a Palantir Technologies (PLTR) partnership and several unexplained drone sightings across the U.S. RCAT surged to a Dec. 2, all-time high of $12.57, and is up 940.9% in 2024.
KTOS was last seen down 3.3% at $27.35, but the company just secured a $6.5 million contract with the Defense Advanced Research Projects Agency (DARPA) to provide flight testing for hypersonic research supporting weapon systems. The stock sports 35.5% year-to-date lead, and yesterday hit a three-year high of $28.71.
AVAV is down 3.7% $162.63 at last check, cooling off from yesterday's 7.8% gain after the U.S. Government Accountability Office (GAO) rejected a competitor's protest related to an army project. A familiar floor at the $150 level contained the equity's early December bear gap, and its Nov. 11, record peak of $236.60 is contributing to a 28.6% year-to-date lead.