Middle East conflict flares up, drone demand doubles — long defense stock AeroVironment
While the biggest tech stocks have been sliding, a military drone maker just doubled its order backlog and jumped 30%. With new conflicts flaring up in the Middle East and the broader tech sector looking shaky, defense companies are emerging as a safer place to put your money.
Idea
AeroVironment (AVAV) just reported a massive earnings beat and a doubled backlog, highlighting a surge in defense spending that is independent of the tech sector's AI jitters. At the same time, a flare-up in the Middle East has disrupted global oil shipping, reinforcing the need for advanced military technology. With the Magnificent Seven shedding $2.3 trillion in value over June, investors are rotating capital away from vulnerable mega-cap tech and into defense contractors with tangible, growing revenue.
Key details
Community
News sources
- Drone Company AeroVironment Skyrockets 30% After Revenue, Backlog Double — Investor's Business Daily
- Oil Jumps After Tanker Hit in Middle East Flare-Up — Bloomberg
- Magnificent Seven stocks lose $2.3 trillion in June 2026 — Yahoo Finance