Why has the DroneShield share price crashed 46% since July?
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Defence stocks have been on a run since July, coinciding with escalations between Israel and Iran. Names like Lockheed Martin Corp (NYSE: LMT) and RTX Corporation (NYSE: RTX) are up 30% and 22%, respectively. Yet the DroneShield Ltd (ASX: DRO) share price has fallen 46% over the same duration.
If investors are bidding up the share price of numerous companies in the industry, why is the ASX-listed drone defence business seeing its valuation plunge? It’s further mystifying, considering DroneShield reported a 110% increase in first-half revenue. In a record result, the company achieved $24.1 million in revenue.
Scratching your head yet?
There are a couple of grounds for DroneShield’s share price retreat.
