I'm Eyeing This Drone Battery Name Amid Poor Market Action
Negative action continues as AI keeps swinging its wrecking ball.
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Market action is mostly negative Monday morning as investors grapple with tariff uncertainty and the ongoing wrecking ball known as AI. Software stocks are getting pounded again with the iShares S&P 500 Software Index Fund ETF (IGV) breaking last week's support with a drop of 4%. AI software leader Palantir Technologies (PLTR) rolled over after a brief bounce attempt over the past few sessions.
Breadth is poor, with only about 40% of stocks in positive territory. One bright spot is biotechnology, with the iShares Biotechnology ETF (IBB) trading up 0.9%. A takeover of Arcelix is creating sympathy action in the group and names like Vanda Pharmaceuticals (VNDA) , Viking Therapeutics (VKTX) , Fortress Biotech (FBIO), and Moderna (MRNA) are seeing interest. Cullinan Therapeutics (CGEM) , which I highlighted recently as a great chart, continues to act well.
Slim Pickings
There isn't much out there for traders right now. My scan shows only about 20 stocks moving up 10% or more. That is a very short list and it tells you that traders are sitting on their hands waiting for better conditions. When the market gets healthy again that number jumps to hundreds. Right now it's telling me to be patient and highly selective.
AMPX: A Drone Battery Story Worth Watching
One stock I've been watching is Amprius Technologies (AMPX). I have a small position and the story is compelling enough to share.
Two analysts just initiated coverage with Buy ratings. Craig-Hallum's Eric Stine started with a "Buy" and $17 price target, noting that Amprius has commercialized its proprietary silicon lithium-ion technology and is positioned for mass adoption. This isn't a theoretical breakthrough sitting in a lab. It's already in production. Needham's Austin Bohlig followed with a Buy and $20 target, calling the silicon-anode batteries "the holy grail" of battery technology.
These batteries allow drones to fly farther and stay airborne longer. In the current defense environment, that isn't a nice-to-have, it is a necessity. About 80%-90% of AMPX revenue comes from unmanned aerial systems applications. This is as pure a drone play as you're going to find in the public markets.
The numbers back up the thesis. Revenue in third-quarter 2025 came in at $21.4 million, a 173% year-over-year jump. Full year 2024 revenue was $24 million, up 167% from the prior year and the customer base is expanding rapidly. Tipranks shows five analysts with an average price target of $18.50 against a current price of around $10. That's significant upside if the story plays out.
Now for the caution. The company is still burning cash with roughly $45 million in losses in 2024. The chief technology officer recently sold shares. With a beta north of three, this stock moves big and fast in both directions. Q4 results will be released on March 5, and that will be the next major test.
I like the story and plan to expand my position but I'm keeping size limited until after the earnings report. I'll trade the reaction when those numbers hit. The fact that analysts are initiating with bullish targets right in front of the report adds conviction but doesn't eliminate the risk. It is important to size this trade to reflect the high level of risk.
At the time of publication, DePorre was long AMPX, CGEM.
