AVAV Stock Looks To Snap 2-Day Losing Streak On New Army Deal Amid Pentagon’s Drone Spending Surge

• The contract falls under the Army’s LASSO program, which develops small, portable weapons for quick battlefield use. 
• The Switchblade 400 is a portable, medium-range weapon built to target armored threats. 
• The Trump administration is planning to heavily invest in drones and anti-drone systems. 

AeroVironment  (AVAV) stock looks to reverse two consecutive sessions of loss as the defense tech provider bagged a new prototype agreement with the U.S. Army aimed at modernizing battlefield capabilities. 

The agreement, announced Monday, focuses on adding the Switchblade 400 to a military upgrade program. The goal is to create fast, accurate, and easy-to-move strike systems for use in difficult battlefield conditions. 

AVAV’s Army Award And Battlefield Role

The contract is part of the Army’s Low-Altitude Stalking and Strike Ordnance (LASSO) program, which focuses on small, easy-to-carry weapons that can be quickly used in the field. 

This selection positions the Switchblade 400 as a key asset in advancing AI-enabled targeting and modular battlefield integration for U.S. forces operating in contested zones.

The Switchblade 400 is a medium-range, man-portable loitering munition designed for anti-armor missions. According to the company, it supports the Army’s goal of shortening the sensor-to-shooter timeline by allowing individual soldiers to detect, identify, and engage targets through a unified digital network. 

“Being selected under the LASSO program positions AV as a long-term partner to the Army as it modernizes its loitering munition capabilities, from development and testing through production, fielding, and continuous capability evolution.”

AeroVironment stock edged 0.02% higher in Tuesday’s premarket. 

Government’s Defense Spending Shift Benefits AVAV 

The latest award follows increased Pentagon spending on asymmetric warfare technologies aimed at improving battlefield flexibility. 

The U.S. government wants to sharply raise military spending to about $1.5 trillion, which is 42% more than before. The aim is to update the military and get it ready for future kinds of war.

The proposal also puts strong emphasis on drones and anti-drone systems, with over $74 billion allocated. This is the biggest investment ever in unmanned military technology.

In April, AeroVironment expanded its role in U.S. defense across land, sea, and air with several new contracts and technology demonstrations.

The U.S. Navy selected the company’s JUMP 20-X drones for ship-based surveillance and intelligence missions. The U.S. Air Force also awarded a $25 million contract to develop wearable technology. Meanwhile, the U.S. Army placed a $14.6 million order for VAPOR unmanned aircraft to support medium-range reconnaissance missions.

AVAV Retail Traders View 

On Stocktwits, retail sentiment around the stock remained in ‘bearish’ territory while message volume surged 800% over a period of 24 hours. 

A Stocktwits user said Aerovironment “is the future of combat Worldwide!.”

Another user said, “This order from the army is just the beginning.”

AVAV stock has declined by over 25% year-to-date. 

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