# Drone Stocks Rally as High-Beta Small Caps Lead

> Red Cat jumps 10% as drone stocks surge.
- Title: Drone Stocks Rally as High-Beta Small Caps Lead | Shortify
- Summary: Red Cat jumps 10% as drone stocks surge. Red Cat Holdings stock rose 10% after a 39% year-to-date decline, while Ondas Inc. climbed 8% and AeroVironment…
- Keywords: red cat holdings, ondas inc, aerovironment, drone stocks, high-beta small caps, nasdaq rcat, nasdaq onds, nasdaq avav, Drone, Stocks, Rally, High-Beta
- Source: 24/7 Wall St. — https://247wallst.com/investing/2026/10/27/drone-stocks-rally-as-high-beta-small-caps-lead-red-cat-jumps-10-ondas-climbs-8-aerovironment-ticks-up
- Author: David Moadel
- Published: 2026-10-27T17:51:14+00:00
- Read time: 1 min
- Topics: red cat holdings, ondas inc, aerovironment, drone stocks, high-beta small caps, nasdaq rcat, nasdaq onds, nasdaq avav
## Drone Stocks Rally
Small-cap drone names are surging while the sector's established defense player barely budges.
## Red Cat Jumps 10%
Red Cat Holdings stock is at $4.84, up 10% in afternoon trading, putting the small-cap drone maker at the front of the group.
## Red Cat Down 39% YTD
Even after that surge, Red Cat stock is down 39% year to date, so the rebound is starting from a deeply bruised base.
## Ondas Climbs 8%
Ondas Inc. stock is at $6.66, up 8%, keeping pace just behind Red Cat stock as the second-strongest name in the group.
## AeroVironment Ticks Up 2%
AeroVironment stock is at $128.03, up 2%, a much milder gain that leaves the sector’s larger, established name trailing both small caps by a wide margin.
## Defiance Drone ETF Up 5%
The Defiance Drone and Modern Warfare ETF is up 5%, with Ondas and Red Cat ranked among its larger disclosed holdings as of June 30.
## Red Cat Aerial Launch
Red Cat launched Red Cat Aerial earlier this month, combining its Teal Drones and FlightWave Aerospace teams with TRICHON, a hand-launched tricopter for intelligence, surveillance and reconnaissance missions.
## Key takeaway

Red Cat Holdings stock rose 10% after a 39% year-to-date decline, while Ondas Inc. climbed 8% and AeroVironment gained 2% in afternoon trading.