Red Cat Climbs 5%, Ondas Gains 4% as Drone Stocks Rebound; AeroVironment Rises 2% on $405 Million Laser Order

Drone and defense-tech stocks are winning back part of their recent losses as a broad risk-on rebound lifts high-beta growth names. Red Cat Holdings (NASDAQ:RCAT) stock is at $4.43, up 5% in afternoon trading. That gain recovers part of a 6% drop on November 10, with the company moving alongside its drone peers.

Ondas Holdings (NASDAQ:ONDS) stock is at $5.81, up 4%. A 7% slide on November 10 came just before the Ondas rebound. AeroVironment (NASDAQ:AVAV | AVAV Price Prediction) stock is at $125.41, up 2%, after the company announced a large laser defense order. On November 10, AeroVironment stock dropped 3%.

Profit taking in high-beta names drove the November 10 sell-off, along with a hotter-than-expected October Consumer Price Index report that raised expectations for Federal Reserve rate hikes. Chicago Fed President Austan Goolsbee called the latest inflation report “borderline disturbing” as the Fed considers more rate hikes, yet buyers are stepping back into Red Cat, Ondas and AeroVironment.

AeroVironment Lands a Major Laser Weapons Order

AeroVironment announced on November 11 a $405 million international order for its LOCUST X3 laser defense systems. Reports indicated that the customer is in the Middle East. Even before the deal, AeroVironment carried a record $1.5 billion funded backlog as of its September 9 report, reflecting steady demand for its drones, loitering munitions and counter-drone systems.

Wahid Nawabi, AeroVironment’s CEO at the time of that report, said, “Our customers are continuing to field autonomous capabilities at increasing scale, and our priority is expanding manufacturing capacity across our sites and strengthening our supply chain so we can deliver for our customers at the speed their missions require.” Despite the new order, AeroVironment stock isn’t keeping pace with Red Cat and Ondas, though it also fell less than either name on November 10.

Ondas Adds a Drone Order as Red Cat Rides the Sector Bounce

Ondas announced a new order for its Digital Bat drones ahead of the November 11 open, adding a company-specific push to the sector bounce. Results for Q3 2026 arrive before the market opens on November 12. In Q1 2026, reported on May 14, revenue at Ondas reached $50.12 million, up 1,079.8% year over year. Shareholders are looking for the second-half revenue ramp that management has tied to its full-year target.

Sector momentum is carrying Red Cat after the November 10 sell-off. On August 6, Red Cat reported its Q2 FY2026 revenue of $20.19 million, up 527% year over year, missing expectations. The company ended that quarter with $325.55 million in cash after equity raises, giving it room to fund its production growth.

How Three Drone Business Models Stack Up

AeroVironment runs the widest portfolio of the three, combining Switchblade loitering munitions, Puma and P550 reconnaissance aircraft and the Titan counter-drone system with the space, cyber and directed-energy business it gained by acquiring BlueHalo. That mix leans on established U.S. Department of Defense franchise programs and allied militaries, with LOCUST lasers drawing growing international interest.

Ondas is building a system-of-systems platform largely through acquisitions, including Sentrycs and Iron Drone counter-drone systems, Mistral and Rotron loitering munitions, World View stratospheric balloons and ground robotics. Rapid deal-making speeds up the company’s growth but also raises integration risk.

Red Cat focuses on small tactical drones led by the Black Widow, with Blue Ops uncrewed surface vessels and Quaze wireless power extending its reach into maritime and persistent operations. Much of the company’s near-term opportunity rides on U.S. military procurement such as the Drone Dominance program, where its Teal Drones unit advanced to Gauntlet II.

Ondas Earnings Set Up the Next Test for Drone Stocks

Ondas now faces the question of whether its Q3 results deliver that second-half ramp. Strong numbers could extend the rebound into Red Cat and AeroVironment, while a disappointment could bring back the rate-driven selling that hit the group on November 10.

Fresh evidence of demand for counter-drone and autonomous systems comes from the AeroVironment laser order and the new Ondas drone order. Hotter inflation and possible Fed hikes give the bears their case, since both could weigh on high-beta names that are still burning cash, including Red Cat. Traders may prefer to keep their share exposure smaller until the Ondas earnings question resolves.

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