Short bets against DroneShield soar amid tech fears and Trump cuts
Shares in the once popular defence stock are down 75% from their peak, with military spending cuts in the US and new fibre optic technology cited as factors.
DroneShield has gone from being the hottest small cap on the ASX to one of the most out of favour names as short sellers gain the upper hand over one of the local market’s few defence stocks.
Shares in the anti-drone technology company, which surged last year off the back of a expected increase in demand from conflicts in Ukraine and the Middle East, have fallen 75% since touching record highs at $2.70 in July last year.
Market sources pointed to several factors behind the decline, including increased bets by short sellers against the stock amid growing conjecture over its drone technology.
Defence stocks globally have been under pressure after US President Donald Trump flagged potential cuts to military spending in the world's largest economy.
