AgEagle Aerial Systems (UAVS) is Booming after Possible Leaked Partnership with Amazon
April 29, 2020 Aaron
AgEagle Aerial Systems, a company that designs, develops, produces, distributes, and supports unmanned aerial vehicles for the precision agriculture industry is possibly entering the commercial industry making this stock very intriguing.
As of April 29th, AgEagle is absolutely skyrocketing. Up 170% in a single trading day to $2.50. The company started the month of April with a stock price of $.38, a 570% increase! Now what’s causing all of this price action?
Possible Partnership With Amazon
AgEagle announced the expansion of scope for its contracted commercial drone work through the receipt of follow-on purchase orders from a major e-commerce company. To put it simply, the company is going to manufacture its drones for the use of product delivery.
The company failed to name this partner but there are rumors the partner is mega giant Amazon. Partnering with a company of this magnitude could help AgEagle tremendously and propel them to new heights and profitability.
Many believe the use of drones are the way of the future. The ability to deliver products quicker than ever before in sometimes as little as 30 minutes. The use of commercial drones for package delivery has seen its utility amplified worldwide with the spread of the global COVID-19 pandemic so its plausible Amazon is looking to expand their fleet.
How Do We Know?
Thanks to @StanleyBarsch, he identified a possible answer to who AgEagles partner may be…
To summarize his theory, UAVS already announced their expansion and its contract to enter the commercial drone landscape, we just needed to find out who it was exactly. Piecing it together, Amazon has a fulfillment center in Kansas that goes by the name of MKC6. They currently have drones registered with the FAA. The drones are identified with the name MK27.
Already knowing AgEagle is entering the commercial industry, they designed a drone to satisfy the specific needs of delivery. The drone they designed goes by the name MK35. This drone is found to be registered with the FAA to a British company.
The significance of this finding is because of one key fact. Even though both drones contain similar names, it’s not enough to make a conclusion or theory (although it certainly adds fuel to the fire). The interesting catch is that the UK is exactly where Amazon has been testing its drone delivery service.
By connecting the dots, it’s not a a guarantee that the rumor actually turns out to be true, but the evidence here certainly points in that direction. Investors seem to have run with it and as a result, the stock price is skyrocketing. I still believe UAVS has room to run if a rumor like this is confirmed. Look to possibly add a short term position here as time might be running out to get in on the action.
AI
