Drone stocks rallied unevenly, with small caps leading: Red Cat (RCAT) rose 10% to $4.84 but is still down 39% year to date, Ondas (ONDS) climbed 8% to $6.66 and is down 32% YTD, while AeroVironment (AVAV) gained 2% to $128.03 and is down 47% YTD. The Defiance Drone and Modern Warfare ETF (JEDI) rose 5%, with Ondas and Red Cat among its larger disclosed holdings as of June 30, compared with a 0.6% gain for SPY. Red Cat launched the Red Cat Aerial brand, combining its Teal Drones and FlightWave Aerospace teams, and unveiled TRICHON, a hand-launched, long-endurance tricopter built for ISR missions. Ondas formed Regna AI, a separate private company to deliver mission-specialized AI models inside customers' environments, while AeroVironment is the larger, established maker of military drones with the richest product portfolio. The article notes that volatility that amplifies small-cap gains can also work in reverse, that the market has not yet rewarded Ondas' acquisition-driven expansion, and that whether TRICHON draws confirmed orders is Red Cat's next test.
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SPY
• NeutralSPDR S&P 500 ETF
Relevance: low
| Market | US stocks |
|---|---|
| Sector | ETF |
| Close on 10/26/2026 | 765.22 |
| Change that session | +0.69% |
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