Ondas Stock Breaches $10 Ahead Of Earnings: Retail Bulls Expect A 'Short Squeeze'

• Ondas 40% short interest is far above its peers, including Red Cat and AeroVironment, raising squeeze potential. 
• With the stock above $10 and up over 3% overnight, strong earnings could force short sellers to cover.
• Analysts expect a 978% jump in Q2 revenue to $67.97 million.

Ondas Inc. (ONDS) stock has reclaimed the $10 mark for the first time in more than two months, putting the defense technology stock back in the spotlight ahead of its second-quarter earnings report on Thursday. With short interest approaching 40% of the public float, bullish retail traders are watching closely for a potential short squeeze if results or guidance beat expectations.

A Potential Squeeze Takes Shape In Ondas 

Ondas is among the most heavily shorted stocks in the defense and autonomous technology space, with short interest at roughly 40% of its tradable shares, according to Koyfin data. Bears remain concerned about the company’s spending, cash use, and possible share dilution from acquisitions. With more than 220 million shares short, rising borrowing costs could increase pressure on short sellers if the stock moves higher. 

Short interest in Ondas’ peers, including Red Cat Holdings (RCAT), Kratos Defense (KTOS) and AeroVironment (AVAV), hovers between 5% and 21%. 

With Ondas shares moving above the key $10 level before Q2 earnings, retail traders are watching for a possible short squeeze. High short interest means strong revenue, better backlog growth, or raised guidance could push short sellers to buy shares to cover their positions. 

Ondas stock traded over 3% higher overnight, on track for its fifth straight day of gains. 

Ondas’ Revenue Growth Remains The Central Test

The company has raised its 2026 revenue outlook to more than $525 million, representing a 25% increase from its earlier target. The company also entered Q2 with a pro forma backlog above $457 million.

According to Fiscal AI data, analysts expect Q2 revenue of approximately $67.97 million, compared with $6.3 million last year. The sharp 978% increase reflects Ondas' rapid expansion in autonomous defense technology through contracts and acquisitions, although investors will also watch out for profit as the company scales.

ONDS Stock: Retail Stance 

On Stocktwits, retail sentiment around the stock remained in ‘extremely bullish’ territory. The stock saw a 101% increase in message volume over the past week, with a 2.8% gain in watchers. 

A user said, “This will put GameStop squeeze to shame!!! ONDS is very heavily shorted right now.” 

Another user said, “The Perfect Storm is when elements of a short squeeze, meet elements of a delta squeeze, that meet elements of a gamma squeeze.  When these three squeezes meet, you get a Weezie.  With a little luck, we might get one.” 

A third user said, “This is literally the worst possible scenario for shorts. A. if it explodes they are f*****. its simply not going back to 7 or 8. B. if it goes down on a good ER which I see frequently….. there are enough people in the markets that realize that ONDS is about to become a monster company. They will simply buy the shares for a discount to DCA or just add more.” 

ONDS stock has gained 0.1% year-to-date. 

Also See: Why Did PANW, SNOW, EAT Stocks Surge To 52-Week Highs Today?

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