We discuss aerospace and drone makers amid global conflicts

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KCBS Bloomberg Tech and Business Report 4 min 1 speaker 6 chapters transcribed 4 days ago
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What new defense startups are emerging from the current global conflicts?

Holly Quan 0:00
Time for our daily tech and business report. Today we're joined by Bloomberg Aerospace and Defense Stock Reporter Arvalis Bonillo Ramos. As conflicts rage around the world, members of the military-industrial complex are reaping the benefit. New methods of fighting have paved the way for new defense startups to have their moment in the sun. So, Arvalis, talk about the kind of companies that are benefiting right now. I mean, yesterday I was just reading about a uh drone maker here in the Bay Area that was gonna put three and a half billion dollars as an investment over the next couple of years because of the need for drones.
Arvelisse Bonilla Ramos 0:39
Yeah, and thank you so much for having me, Holly. Well, there's a couple of companies that are coming into the market um with that expectation that they can tap into this budget boost that may be coming for the full year of twenty twenty seven.

Which companies are positioned to profit from the Pentagon’s domestic‑production push?

Arvelisse Bonilla Ramos 0:53
You have companies that are you know, providers of electronic parts. uh for different industries from aerospace, space and defense firms. You also have a company like Swarmer who basically has an AI platform that is used by drones to deploy and coordinate drone swarms. So it's companies that can produce um product and, you know, and align with what the Pentagon is sort of like trying to do now, which is a focus on boosting domestic production, enhancing security and sort of like expanding commercial use. And drone indust the drone industry is right there, you know, sort of like, hey, we're here. Um and there's a couple of, you know a little bit of a shift on what warfare is now and there's a lot of um I would say quote unquote from what her analysts have said but definitely a hype around uh defense tech names.

How are drone‑swarm platforms like Swarmer changing modern warfare?

Holly Quan 1:48
How lucrative is this sector? Because I would imagine these companies were just kind of percolating along before and they find a real opportunity now.
Arvelisse Bonilla Ramos 1:59
Yeah. Well I mean the the budget increase or boost that is sort of like being requested now and actually Secretary of Defence Pete Hexit is right now at the house, sort of like making the case of where this money is gonna be allocated and why this money is needed. And like you mentioned, a lot of these companies throughout the years, they come and go. That's a reality of the markets. Um but there is sort of um Basically a page that we have taken from Ukraine that has shown the capabilities of drones.

Why is the defense sector considered especially lucrative right now?

Arvelisse Bonilla Ramos 2:28
And now it's happening again with the conflict in Iran where even the most um you know, um uh military is like best enforce and and and this pu this budgets out there in the military are, you know they can it it the these drones over there can make a tent, um in in them, yeah.
Holly Quan 2:49
Is it that some of these let's just say drone makers, um, they can't produce fast enough?
Arvelisse Bonilla Ramos 2:57
Um, not necessarily. It's more about the just you know more it's more about stockpiling.

How have recent IPOs performed for fast‑growing drone and defense tech firms?

Arvelisse Bonilla Ramos 3:06
It's about boosting that production and just readiness. I think the word readiness across uh since February twenty eighth has been very much at the top of the interest. Um so how can um these new names can sort of like participate, you know, get contracts 'cause that's the thing. You get the money, but you need this money to be awarded and you need this m award to be appropriated. So these uh products can come into the market.
Holly Quan 3:33
And how were the IPOs for some of these f um companies like you s much like Swarmer? Mm-hmm. How were the APOs?

What is driving the surge in investor interest for AI‑enabled defense technologies?

Holly Quan 3:41
Yeah, I I I would imagine that they just went through the roof.
Arvelisse Bonilla Ramos 3:45
Yeah, and and actually we called in our story swarmers very eye popping, sort of like just showing, um, you know, a new market. uh you know, the interest from from uh investors was really through the roof. And it sort of like revealed that. A newfound investor appetite for stocks at that intersection. It showed that there is a lot of interest in what defense is with defense technology, but also how to integrate other technology, for example our artificial intelligence, which is very much also an interest from for investors in the market.
Holly Quan 4:21
Definitely booming. Arvelise, thanks so much for the time and for the reporting that is Arvelis Bonia Ramos, the Bloomberg Aerospace and Defense Stock Reporter.

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