Ondas Stock Climbs After Seven Weeks In The Red: Retail Hopes For 'Drone Rally' As US-Iran War Rages On

• Ondas shares declined as investors focused on dilution risks, capital raises, and CEO stock sales.
• Ondas’ defense expansion, Sentinel division, and Palantir AI integration are seen as growth catalysts. 
• The company has lifted its 2026 revenue forecast to at least $525 million.

Ondas, Inc.’s stock edged nearly 0.6% higher overnight heading into Monday after falling for seven straight weeks. Retail traders are now hoping for a recovery in drone stocks, while rising U.S.-Iran tensions raise expectations for increased defense demand and growth in autonomous technology.

U.S.-Iran tensions increased over the weekend as the U.S. launched more strikes on Iran, targeting military capabilities. The conflict also resulted in the death of a third U.S. service member.

Ondas Struggles As Drone Rally Hopes Meet Dilution Fears  

Ondas’ stock has been under pressure as investors reacted negatively to capital raises and executive stock sales, overshadowing acquisitions aimed at expanding its autonomous defense capabilities. 

Earlier this month, Ondas announced a deal valued at $875.8 million to acquire DZYNE Technologies, a defense technology company specializing in unmanned aircraft systems. Following the transaction, management raised its 2026 revenue forecast to at least $525 million, up from an earlier estimate of $390 million.

The company completed an underwritten share offering of 46 million shares that generated approximately $217 million to support its drone and defense initiatives. The additional stock supply pressured shares as investors adjusted to dilution concerns. Sentiment also weakened after CEO Eric Brock sold about $31.9 million worth of shares in June.

ONDS’ Long-Term Defense Opportunity Remains In Focus

Despite the stock decline, analysts maintain a positive outlook, with all eight analysts covering the stock recommending either a “Buy” or “Strong Buy” with an average price target of $19.81, according to Koyfin data. 

The new price target implies a whopping 203% upside to the stock’s last closing price. 

Investors are watching whether Ondas can convert its expanded defense portfolio into sustained revenue growth. Ondas has combined its defense-related businesses, including DZYNE and stratospheric technology provider World View, under the Ondas Sentinel division. 

The company is also integrating Palantir Technologies' (PLTR) SkyWeaver AI platform into its operations to boost battlefield data processing and defense software capabilities.

Also, Ondas has reported more than $110 million in second-quarter orders, supported by demand for autonomous systems, counter-drone solutions and defense partnerships. 

What Are ONDS Retail Traders Saying 

On Stocktwits, retail sentiment for ONDS remained in ‘neutral’ territory with a 74% increase in message volume over the last 24 hours. 

A user said, “$RCAT $ONDS $UMAC drone rally imminent.”

Another user said, “Risk Reward metrics for ONDS has become substantially better. Focus on drones as the future and the USA s****** at the moment and in need of serious strategic investments. This is our time we will decouple from Ai and normal tech trade to got to have defense play.”

A third user said, “$ONDS is considerably cheap here with the war starting up again. One of the top opportunities I’m watching this week. Defense drones could be huge especially if Iran begins invasion on US bases.”

ONDS stock has crashed 33% year to date. 

Also See: Why Did ATAI, PANW, TRV Stocks Surge To 52-Week Highs Last Week?

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