US Military Drone Stocks Lose 1 Trillion Won in a Day

AeroVironment Inc. (AVAV), a U.S. military drone maker, closed at $243.42 on the Nasdaq on February 11, down 7.52%. Its market capitalization fell by about $850 million in one day—roughly ₩1.1 trillion—to around $12.1 billion (about ₩15.8 trillion). Trading volume exceeded 1.16 million shares, reflecting continued turnover amid recent heightened volatility.

The stock had plunged 23% over five trading days at the end of January on concerns over an unexpected work stoppage and contract delays in a U.S. Army satellite-related project. Then, in its second-quarter results, while revenue rose more than 150% year-over-year, the company reported a net loss of $17.1 million and issued lower profit guidance, rattling investor sentiment.

Some research reports warn of a short-term correction following the defense-sector rally, pointing to stretched valuations and profitability pressures.

Founded in 1971 and headquartered in Arlington, Virginia, AeroVironment designs military and commercial unmanned aerial vehicles, tactical missiles, and cyber/electronic-warfare solutions. The company has boosted its profile since the war in Ukraine by supplying Switchblade loitering munitions to the U.S. Department of Defense and allied forces.

Last year, AeroVironment expanded its portfolio by acquiring BlueHalo, a drone and directed-energy weapons specialist, for about $4.1 billion (around ₩5.3 trillion). Increased U.S. defense spending and surging demand for autonomous weapons systems are cited as medium- to long-term growth catalysts.