Tiny AI Drone Technology Company Surges 1,000% in Two Days
Arvelisse Bonilla Ramos
2 min read
Source: Swarmer Inc.
(Bloomberg) -- Artificial intelligence drone software maker Swarmer Inc.’s shares have surged 1,000% in two days, making it the best debut for a US stock in nearly a year.
The Austin, Texas-based company’s shares closed up 77% to $55.00 on Wednesday, after closing up 520% on Tuesday. It is now the best showing for a newly listed stock since Newsmax Inc.’s 2,230% two-day gain last year.
“You’re pretty much hitting some of the most important buzzwords in the market right now,” said Steve Sosnick, chief strategist at Interactive Brokers. “Anything with artificial intelligence clearly gets people’s attention. And as we are literally engaged in drone warfare, drone defense companies are clearly another exciting field.”
Swarmer does not manufacture drones, but its AI technology can be used to deploy and coordinate drone swarms, like a flock of birds. Its platform has been used in Ukraine with more than 100,000 real-world missions in active combat since April 2024, according to a regulatory filing.
The two-day rally comes amid a growing investor interest in the defense industry, along with the emergence of software-driven, autonomous systems and a broader move in modern warfare toward low-cost weapons.
Swarmer’s management includes co-founders Serhii Kupriienko and Alexander Fink, who serve as global chief executive officer and US chief executive officer, respectively, according to its regulatory filing. The company was incorporated by Fink in October 2023.
The rally — which has echoes of the volatile gyrations that so-called meme stocks often are associated with — brings the company’s market value to nearly $680 million after its initial public offering. The company’s revenue generated just $309,920 in revenue last year, a 6% decline from the previous period.
“It’s one thing to see a stock rally strongly after an IPO, but to see it rise more than 1,000% is ridiculously extreme,” said Matt Maley, chief market strategist at Miller Tabak + Co. Maley noted that such a move is a sign that investors are getting complacent about the investment landscape despite uncertain geopolitics.
