Many traders and investors are asking what’s the story with UAVS stock after getting a shoutout from Barstool Sports founder Dave Portnoy on Twitter. He has amassed 1.6 million followers who now regularly follow his picks. Robintrack shows that over 8000 Robinhooders added UAVS stock to their accounts after seeing Portnoy’s tweet.
UAVS stock has already been on an impressive run so far this year posting a 395% gain. Many are now asking if this bull run is set to continue or not.
About UAVS Stock
First up, here’s a little background info for those that aren’t familiar with UAVS stock. Founded in 2010 and based in Kansas, AgEagle has earned distinction as one of the industry’s leading pioneers of technologically advanced drones and aerial imagery-based data collection and analytics solutions. In late 2019, AgEagle began pursuing expansion opportunities within the emerging Drone Logistics and Transportation market with the manufacture and assembly of UAVs designed to meet specifications for drones that are meant to carry packaged goods in urban and suburban areas. For more information, visit ageagle.com.
Amazon and UAVS Stock
While the company has drones for commercial growers and hemp cultivators, the real potential is in package delivery and that is with Amazon. The coronavirus pandemic has created an urgent need for contact-free deliveries. The cheapest and most efficient way to do so is with drones.
Most of the speculation surrounding Amazon and UAVS stock comes from what the company has said in filings and speculation in the Wichita, Kansas area. In an April 15 news release, UAVS stock announced “the expansion of scope for its contracted commercial drone work through the receipt of follow-on purchase orders from a major e-commerce company.”
“Representing significant new revenue, the new purchase orders relate to the continued manufacturing and assembly of drones used for the testing and refining of the client’s commercial drone small package delivery vehicles, systems and operations currently in development.”
In May, Amazon announced that it will open a distribution site in Wichita possibly by the fall with more than 100 new jobs, city officials confirmed Thursday. There’s also talk about a warehouse — with more than 1 million square feet on the main floor and more than 250,000 square feet on the mezzanine level — that is supposed to open by August 2021 at the northeast corner of 69th North and Broadway.
Fueling speculation around UAVS stock is that last week the company announced that AgEagle will locate and expand its manufacturing operations in Wichita, Kansas. The Company worked with the Kansas Department of Commerce to secure incentives as it evaluated locations in two different states.
Why Further Upside Is Likely
There are a number of factors that we think can further the upside in UAVS stock. For one, there’s too much coincidence that Amazon and AgEagle are expanding in Wichita at the same time. No doubt Amazon has AgEagle under a confidentiality agreement if they are working together.
Second, there’s also enormous potential with AgEagle’s drone technology. Drones are the future, no question about it.
Third, AgEagle has over $13 million in cash and a market cap of ONLY $86 million. UAVS stock looks to be a discount entry opportunity at present levels.
There’s a lot of buzz right now with UAVS stock. All it takes is one press release to send UAVS stock flying. Considering its small market cap and insiders owning 54% of the company, there’s a lot of potential, especially if the company comes out with a deal with Amazon or another e-commerce player.
As always, good luck to all (except the shorts)!
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Disclosure: We have no position in NYSEAMERICAN:UAVS or any of the securities mentioned. We wrote this article ourselves and it expresses our own opinions. We are not receiving compensation for it. We have no business relationship with any company whose stock is mentioned in this article.