US Drone Stocks Surge on Pentagon's Bold Memo: Who and Why

Several drone stocks surged after the US Department of Defense released a memo with bullish implications for the industry. The memo, titled "Unleashing U.S. Military Drone Dominance," focuses on increasing US production of small drones and equipping every squad with cheap, expendable drones by 2026. Red Cat's Black Widow, a small drone, soared 26% on July 11 and another 20% on July 14, while Kratos Defense and Security Solutions' shares rose 12% on July 11. The memo's focus on small drones and affordable, expendable drones has boosted the likelihood of growth for Red Cat and other drone stocks.