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Just to be extremely clear right off the bat, the United States government isn’t publicly considering making an investment into Australian publicly-listed drone tech companies, just those in the U.S., according to overnight headlines – but the news has been enough to send Aussie drone stocks higher.
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The share price of Unusual Machines, a U.S.-listed drone tech company backed by Trump’s son Donald Trump Jr, soared as much as +65% last night.
That came on the back of reports in the Wall Street Journal (recently called the “China Street Journal” by President Trump) that the Pentagon is considering becoming a shareholder in listed US drone companies.
That would echo moves made by the Pentagon last year to invest money into MP Materials, a rare earths miner that helped kick off a rare earths bull run down under. Short-lived, in retrospect, but still a contagion bull run to remember.
(Worth considering is that the CEO of MP Materials, when that investment was made, was a fairly loyal Republican Party donor.)
According to the WSJ report, the U.S. government, via the Pentagon, has spent “months” conducting talks with the owners and operators of listed drone tech companies.
Others mentioned in the WSJ piece, having a very good night on Wall Street for the U.S. Thursday session, included Performance Drone Works and Neros Technologies.
Associated companies had a good run just by virtue of being involved in drone tech which included AeroVironment, which jumped +15%, while the American Drone & Modern Warfare ETF jumped +12%. And that same contagion effect can be seen down under on Friday to end off another fairly lacklustre week.
If you accept my thesis Electro Optic has become a more serious Oz drone tech contender than DroneShield, it’s worth noting EOS is back above A$10/sh after +14% Friday.
But Droneshield isn’t missing out; it jumped nearly +8% to A$3.43/sh in late morning trades while fresh-faced newcomer to the ASX listings Ktek Aerosystems jumped just shy of +5% back to 33cps.
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