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2 Drone Stocks Surging from Increased Media Attention
AMBAAmbarella(AMBA) MarketBeat·2024-12-25 12:45

Industry Overview - Recent unidentified drone sightings in New Jersey have sparked increased media attention and investor interest in the drone industry, leading to a surge in stock prices and trading volumes of drone-related companies [1] Company: Red Cat Holdings Inc. - Red Cat Holdings Inc. (NASDAQ: RCAT) specializes in robotic drone hardware and software for military and commercial applications, operating through subsidiaries Teal Drones and FlightWave Aerospace [2] - As of December 20, 2024, Red Cat's market capitalization is 861.7million,withayeartodatestockpriceincreaseof1,121.5861.7 million, with a year-to-date stock price increase of 1,121.5% [3] - For fiscal Q2 2025, Red Cat reported a loss of 9.1 million on revenues of 1.535million,withyeartodatelossestotaling1.535 million, with year-to-date losses totaling 16.8 million on 4.3millioninrevenue[5]Thecompanyhassecureda4.3 million in revenue [5] - The company has secured a 1 million contract for Edge 130 Blue drones from the U.S. Army and is expanding its manufacturing capacity [5] - Red Cat has partnered with Palantir Technologies Inc. to integrate AI-driven Visual Navigation software into its drones, enhancing navigation capabilities [6][21] Company: Ambarella Inc. - Ambarella Inc. (NASDAQ: AMBA) develops system-on-a-chip (SoC) designs that enable high-definition video processing for drones, supporting 4K, 6K, and 8K video capture [7] - The company reported a 30% sequential revenue growth in fiscal Q3, driven by demand for AI inference processors, with revenues rising 63.4% year-over-year to 82.65million[8][24]AmbarellasEdgeAInowaccountsfor7082.65 million [8][24] - Ambarella's Edge AI now accounts for 70% of total revenue, indicating strong growth potential in the IoT and automotive markets through 2025 and 2026 [14] - The stock price forecast for Ambarella is 84.17, reflecting a 13.66% upside potential [24]