40% of Wall Street Is Betting Against This Little-Known Defense Stock. Here's Why They Might Be Wrong.

Ondas (ONDS) just acquired Cyberhawk, a drone inspection company that uses AI to check critical infrastructure like power lines and pipelines. The deal cost about $125 million, mostly in cash, and ONDS stock rose roughly 4% after the news. It’s the latest in a long run of purchases that has reshaped Ondas from a small drone maker into a much bigger defense and infrastructure business. In the past month, the stock price has increased 29%, and many are now betting against the company.

ONDS currently has a massive short interest of around 40%. That is an unusually large bet that the stock will fall. What’s worth understanding is why. The demand is solid, and the bet against the company is primarily about two other things.