Mentioned:
The United States Army is ramping up their spending on counter-drone technology. Which is exactly why they’ve just awarded a new deal for up to half a billion dollars to AeroVironment.
What’s happening:
- AeroVironment (NASDAQ: AVAV) has been awarded a new counter-drone deal from the United States Army for up to $500M USD
Why it matters:
- This is the single largest contract that the United States Army has awarded to AeroVironment for counter-drone technology and hardware
Going deeper:
- AeroVironment has publicly stated that they will provide the United States Army with counter-drone systems, hardware, software and technical support as part of their new deal
- The United States Army has been striking a flurry of new deals with publicly traded companies lately, including just recently forming a partnership with REalloys (NASDAQ: ALOY) to build a rare earth separation facility on the Tooele Army Depot located in Utah
Market reaction:
- Shares of AeroVironment surged by more than +10% following the announcement
