Aureus Greenway shares gained after announcing a reverse merger with drone Autonomous Power, but quickly retraced post-market.
- Eric Trump-backed Aureus Greenway is getting into the drone and defense business.
- Some traders are skeptical, seeing Trump’s involvement as a net negative for a stock.
- Major drone stocks AVAV, RCAT, and UAVS declined on Monday as President Donald Trump said the Iran war is nearing its end.
Shares of Aureus Greenway Holdings gave up most of their regular-session gains in overnight trading on Monday after the company announced a merger-driven pivot into the drone business, while U.S. President Donald Trump’s comments suggesting the war in Iran could soon end weighed on key drone stocks.
The golf resorts operator, backed by Trump’s son, Eric Trump, saw its shares fall 4.2% in Monday’s after-hours session and tumble a further 13% in overnight trading.
AGH Reversal
AGH stock had risen 12.3% in the regular session after announcing a reverse merger with drone firm Autonomous Power Corp (Powerus), along with a $50 million funding commitment from Korea Corporate Governance Improvement Fund, to become a new U.S. drone and defense contractor.
Stocktwits sentiment for AGH shifted to ‘extremely bullish’ as traders viewed a slew of signals – Trump’s involvement and entry into the lucrative defence tech business – as a significant positive. However, a section of investors was also skeptical for the same reason.
A Stocktwits user said many projects involving Trump’s sons announce partnerships, profits, or involvement, but their stocks often fall later, calling AGH “bag holding now,” meaning investors are stuck holding the stock after buying it at higher prices and the price has since dropped.
Another user alleged insider trading after seeing the stock rise early on and drop sharply later. “I’m so sick of it,” they said.
Drone Stocks Drop As Trump Says Iran War Nearing End
Meanwhile, Trump said in a press conference on Monday that the war in Iran would end “very soon.” “We’re achieving major strides toward completing our military objective,” he said nine days after launching joint military strikes that took out Iran’s Supreme Leader, Ayatollah Ali Khamenei.
Major drone stocks AeroVironment (AVAV), Red Cat Holdings (RCAT), and AgEagle Aerial Systems (UAVS) ended 1% to 8% lower on Monday and dropped further in the after-market session. They had gained sharply in recent days as the war fanned prospects of increased orders.
For Aureus Greenway, although retail sentiment was upbeat, there was considerable debate and skepticism regarding the nature of the stock's price movements. On Stocktwits, retail interest in AGH spiked: 24-hour message volume soared 315% while followers jumped by 41%.
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