ONDS, RCAT Surge Overnight After US-Israel Strikes On Iran: Traders Speculate Heavily On Drone Stocks Exposure

Retail traders were buzzing about the potential use of Ondas and Red Cat drones during the attacks, sending sentiment on these companies soaring.

• The attack was coordinated by Israeli Prime Minister Benjamin Netanyahu and U.S. President Donald Trump to target Iranian military assets.
• Shares of Ondas jumped nearly 5% in overnight trading, while Red Cat’s stock surged more than 10%.
• U.S. Central Command in a post on X said that CENTCOM's Task Force Scorpion Strike, for the first time in history, used one-way attack drones in combat over the weekend.

Shares of Ondas Holdings Inc. and Red Cat Holdings, Inc. jumped in overnight trading Sunday after the U.S. and Israel launched coordinated strikes on Iran over the weekend using drones and missiles, resulting in the killing of Supreme Leader Ayatollah Ali Khamenei.

The operation, referred to as "Operation Epic Fury," was carried out under Israeli Prime Minister Benjamin Netanyahu and U.S. President Donald Trump, targeting Iranian military assets. The broader conflict has also affected regional countries, including Saudi Arabia, Bahrain, Qatar, and the United Arab Emirates, with both sides reportedly deploying drones in combat operations.

Retail traders speculated about the potential involvement of Ondas and Red Cat drone systems in the strikes, lifting sentiment around the stocks. Ondas shares spiked nearly 5% in overnight trading, while Red Cat surged more than 10%, setting the stage for a potential blowout opening on Monday.

What Do We Know About The Drones Used?

U.S. Central Command in a post on X said that CENTCOM's Task Force Scorpion Strike, for the first time in history, used one-way attack drones in combat during Operation Epic Fury. “These low-cost drones, modeled after Iran's Shahed drones, are now delivering American-made retribution,” the post read.

A Reuters report noted that the U.S. military said it used suicide drones that appear identical, citing photos released by the Pentagon, to the new LUCAS (Low-Cost Unmanned Combat Attack System) manufactured by Phoenix, Arizona-based Spektreworks.

The report said the Pentagon has previously noted that these Kamikaze drones are inexpensive and intended to be produced by several manufacturers.

“Unfortunately Wars will never end in the world. Once you finish IRAN, Cuba will be next and then some other countries will have fight but they just never end. Drones technology will only get  better and necessity for every countries defense system,” said one user.

What Is Retail Thinking?

Retail sentiment on Ondas was in the ‘bearish’ territory compared to ‘bullish’ a week ago, with message volumes at ‘low’ levels, according to data from Stocktwits.

Sentiment on Red Cat, on the other hand, was ‘extremely bullish,’ compared to ‘bullish’ a day ago, with retail messages at ‘high’ volume levels.

“I hate to say this but we'll probably see some action on this due to the Iran war. I hate to feel like a war profiteer,” posted one bullish user on RCAT’s stream.

In the last seven days, retail message volumes on Red Cat have jumped 50%, and on Ondas, the volumes soared more than 145%.

Another user on Stocktwits said that even though the optimism is high, Red Cat and the others make short-range squad-level drones and might not have anything do with the attack on Iran.

A bullish user on Ondas noted that between the war, earnings, and the short float, the stock could double in just a couple of weeks.

Shares of Ondas have soared 939% in the last 12 months, while Red Cat has jumped nearly 85% during the same period.

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