The Bot Brief

"There is no force on earth more powerful than an idea whose time has come."     - Victor Hugo

Bots in the News:

Last week both the Bot Index and the S & P 500 rose in dramatic fashion. The broad market jumped 3.43% and the bots gained 4.82%. The markets were stimulated by macro economic and international events that were interpreted by investors as setting a favorable environment for corporate development.

Positive developments in the creation of cease fire between Iran and Israel was a primary source for market enthusiasm. What is good for the majority of investment opportunities is generally at the expense of another sector of the market. There were only a small handful of bot companies that were decliners for the week. Not unexpectedly, the majority of the losers were in the defense sector. Consequently, Lockheed Martin was the weakest member of the Bot Index with a decline of 2.54%.

By far and away the most significant gain within the Bot Index was, ironically, another defense manufacturer. AeroVironment rose an incredible 46.62% for the week. The stock’s jump was a result of the increasing evidence that drone warfare is the wave of the future. The spectacular success of the recent B2 Iran bombing and the control of the sky evidenced by both the Six Days War (of 1967) and the Twelve Days War provided indisputable proof of such strategies. A report entitled, “Army Drone Research Report 2021-2024 & 2025-2031 | Geopolitical Tensions Propel Drone Market to Unprecedented Heights.”  showcased drone growth at a CAGR of 7.92% during 2021-2024. The market was valued at USD 17.16 Billion in 2024 which is expected to reach USD 33.19 Billion in 2031.” 

In a Motley Fool research report they quote, “analysts expected AeroVironment to post fourth-quarter 2024 revenue of $242.6 million -- a company record for quarterly sales -- and earnings per share (EPS) of $1.38, the company actually performed markedly better, reporting sales and EPS of $275.1 million and $1.61, respectively. The future seems bright as well. Management noted that AeroVironment ended Q4 2025 with a backlog that was almost twice what it was at the end of fiscal 2024.”

The only other double-digit performer for the week was another aero-company Joby Aviation whose flying taxis are being tested in the Middle East. The stock gained 10.54%.